QUESTION 11

1. Use the following chart of accounts to prepare the entry

   Chart of Accounts: Cash (101), Accounts Receivable (102), Merchandise Inventory (103), Equipment (110), Accounts Payable (201), Capital (301), Sales (401), Sales Discounts and Allowances (402), Cost of Goods sold (501), Misc. Expenses (503)

   On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Prepare the March 12 journal entries for Klein.

   Clearly explain the accounts and amounts to be debited or credited. This question is eligible for partial credit