Question
Prepare the journal entries for the transactions below: Credit terms for all sales on account are 2/10, n/30. Huff Fitness uses a perpetual inventory system
Prepare the journal entries for the transactions below:
Credit terms for all sales on account are 2/10, n/30. Huff Fitness uses a perpetual inventory system and therefore records the cost of merchandise sold as well as the sale.
Apr 15 Received a check for $29,507.31 from Ultra Fitness Boxing Gym in payment of Inv #303 for $30,109.50, less discount.
Apr 16 Purchased the following items on account from A+ Flex Fitness Center, merchandise inventory, $9,180.00; miscellaneous selling expense, $575; store supplies, $250. Total $10,005. Terms n/30.
Apr 16 Sold merchandise on account, Inv #306 to Miami Connection, $6,117.50. COGS is $3,915.20.
Apr 17 Issued check #2207 for $4,200.00 to Ralph Huff for personal use.
Apr 17 Issued check #2208 for $441 to U.S. Health and Fitness Magazine for an advertisement.
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