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On May 1, Sam Company sold $5,000 of inventory to Bob Company. The sale was made on account and Sam granted Bob credit terms of
On May 1, Sam Company sold $5,000 of inventory to Bob Company. The sale was made on account and Sam granted Bob credit terms of 2/10, n/30. The inventory cost Sam Company $3,000. On May 3, Bob returned $1,000 of the inventory to Sam. (The inventory returned by Bob cost Sam $600.) On May 9, Bob paid Sam in full for the amount due.
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17. Whatjoumal entry will Sam record gn May3 if the perpetual inventory system is used? a debit Merchandise Inventory, S600; credit Cost of Goods Sold, S600. b. debit Sales, S1.000; credit Accounts Receivable, $1,000. c. debit Sales, S1,000; credit Cash, $1,000 d. debit Sales Retums and Allowances, S1,000; credit Accounts Receivable, $1,000. e. debit Sales Retums and Allowances, S1,000; credit Cash, $1,000. 18. What joumal entry will Bob record on May9 if the nventory system is used? a b. c. d. e. debit Accounts Payable, $4,000; credit Cash, $4,000. debit Accounts Payable, S5,000; credit Cash, S5,000. debit Accounts Payable, $4,000; credit Merchandise Inventory, S80; credit Cash, $3,920. debit Accounts Payable, $4,000; credit Purchase Discounts, $80, credit Cash, S3,920 debit Accounts Payable, $4,000; credit Purchase Returms and Allowances, S80; credit Cash, S3,920. 19. What joumal entry will Bob record on May9 if the system is used? a b. c. d. e. debit Accounts Payable, $4,000; credit Cash, $4,000. debit Accounts Payable, S5,000; credit Cash, S5,000. debit Accounts Payable, $4,000; credit Merchandise Inventory, S80; credit Cash, $3,920. debit Accounts Payable, $4,000; credit Purchase Discounts, $80, credit Cash, S3,920 debit Accounts Payable, $4,000; credit Purchase Returms and Allowances, S80; credit Cash, S3,920. 20. Whatjoumal entry will Sam record on May 9? a. debit Cash, $4,000; credit Accounts Receivable, $4,000 b. debit Cash, S5,000; credit Accounts Receivable, S5,000. c. debit Cash, S3,920; debit Sales, S80; credit Accounts Receivable, $4,000 d. debit Cash, S3,920; debit Sales Discounts, S80; credit Accounts Receivable, $4,000. e. debit Cash, S3,920; debit Sales Retums and Allowances, $80; credit Accounts Receivable, $4,000Step by Step Solution
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