Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose Bangor Hardware sells merchandise on account, terms 3/10, n/60, for $600 (the cost of the inventory is $380) on August 17, 2018. Bangor Hardware

image text in transcribedimage text in transcribedimage text in transcribed

Suppose Bangor Hardware sells merchandise on account, terms 3/10, n/60, for $600 (the cost of the inventory is $380) on August 17, 2018. Bangor Hardware later received $400 of goods (cost, $140) as sales returns on August 21, 2018. The customer paid the balance due on August 26, 2018. Journalize the August 2018 transactions for Bangor Hardware assuming the "net" method is used. (Record debits first, then credits. Exclude explanations from any journal entries. Round your answers to the nearest cent, X.XX.) Start by journalizing the revenue portion of the sale for Bangor Hardware on August 17. (Do not yet record the cost related to the sale. We will do this in the next journal entry.) Journal Entry Date Accounts Debit Credit Aug 17 Inventory Next, journalize the cost of goods sold. Journal Entry Date Accounts Debit Credit Aug 17 Journalize the revenue effect of the sale return. (Do not yet record the inventory adjustment related to the return. We will do this in the next journal entry.) Journal Entry Date Accounts Debit Credit Aug 21 Next prepare the entry for cost of goods returned Next, prepare the entry for cost of goods returned. Journal Entry Date Accounts Debit Credit Aug 21 Journalize the cash collection from the customer for Bangor Hardware. Journal Entry Date Accounts Debit Credit Aug 26

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Lost Continent The BBCs Europe Editor On Europes Darkest Hour Since World War Two

Authors: Gavin Hewitt

1st Edition

1444764829, 9781444764826

More Books

Students also viewed these Accounting questions

Question

What is an AAR, and why is it valuable to organizations?

Answered: 1 week ago