Question
Sampson Co. sold merchandise to Batson Co. on account, $39,000, terms 2/15, net 45. The cost of the merchandise sold is $29,250. Sampson Co. issued
Sampson Co. sold merchandise to Batson Co. on account, $39,000, terms 2/15, net 45. The cost of the merchandise sold is $29,250. Sampson Co. issued a credit memo for $5,900 for merchandise returned that originally cost $4,425. The Batson Co. paid the invoice within the discount period. Assume both Sampson and Batson use a perpetual inventory system.
Prepare the entries that Sampson Company would record for the (a) sale, (b) the cost of the sale, (c) the return and the cost of the return and (d) the collection. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".
Prepare the entries that Batson Company would record for the (a) purchase, (b) the return, and (c) the payment. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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