Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sampson Co. sold merchandise to Batson Co. on account, $25,300, terms 2/15, n/45. The cost of the goods sold is $18,975. The Batson Co. paid
- Sampson Co. sold merchandise to Batson Co. on account, $25,300, terms 2/15, n/45.
- The cost of the goods sold is $18,975.
- The Batson Co. paid the invoice within the discount period.
Assume that both Sampson and Batson use a perpetual inventory system and that Sampson Co. uses the net method of recording sales discounts.
If no entry is required, select "No entry required" and leave the amount boxes blank.
Question Content Area
Journalize the entries that Sampson Company would record for the information above. If an amount box does not require an entry, leave it blank.
Transaction | Account | Debit | Credit |
---|---|---|---|
a. | Accounts Payable-Batson Co.Accounts Receivable-Batson Co.SalesSales DiscountsNo entry requiredAccounts Receivable-Batson Co. | Accounts Receivable-Batson Co. | Accounts Receivable-Batson Co. |
Accounts Payable-Batson Co.Accounts Receivable-Batson Co.SalesSales DiscountsNo entry requiredSales | Sales | Sales | |
b. | Accounts Payable-Batson Co.Accounts Receivable-Batson Co.Cost of Goods SoldInventoryNo entry requiredCost of Goods Sold | Cost of Goods Sold | Cost of Goods Sold |
Accounts Payable-Batson Co.Accounts Receivable-Batson Co.Cost of Goods SoldInventoryNo entry requiredInventory | Inventory | Inventory | |
c. | Accounts Payable-Batson Co.Accounts Receivable-Batson Co.CashSales Returns and AllowancesNo entry requiredCash | Cash | Cash |
Accounts Payable-Batson Co.Accounts Receivable-Batson Co.Cost of Goods SoldInventoryNo entry requiredAccounts Receivable-Batson Co. | Accounts Receivable-Batson Co. | Accounts Receivable-Batson Co. |
Question Content Area
Journalize the entries that Batson Company would record for the information above. If an amount box does not require an entry, leave it blank.
Transaction | Account | Debit | Credit |
---|---|---|---|
a. | Accounts Payable-Sampson Co.Accounts Receivable-Sampson Co.CashInventoryNo entry requiredInventory | Inventory | Inventory |
Accounts Payable-Sampson Co.Accounts Receivable-Sampson Co.CashInventoryNo entry requiredAccounts Payable-Sampson Co. | Accounts Payable-Sampson Co. | Accounts Payable-Sampson Co. | |
b. | Accounts Payable-Sampson Co.Accounts Receivable-Sampson Co.CashInventoryNo entry requiredNo entry required | No entry required | No entry required |
Accounts Payable-Sampson Co.Accounts Receivable-Sampson Co.CashInventoryNo entry requiredNo entry required | No entry required | No entry required | |
c. | Accounts Payable-Sampson Co.Accounts Receivable-Sampson Co.CashInventoryNo entry requiredAccounts Payable-Sampson Co. | Accounts Payable-Sampson Co. | Accounts Payable-Sampson Co. |
Accounts Payable-Sampson Co.Accounts Receivable-Sampson Co.CashCost of Goods SoldNo entry requiredCash | Cash | Cash | |
Accounts Payable-Sampson Co.Accounts Receivable-Sampson Co.Cost of Goods SoldInventoryNo entry requiredInventory | Inventory | Inventory |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started