Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 54

Cash Discounts
Golf World sold merchandise to Mulligans for $10,000, offering terms of 1/15, n/30.ulligans paid for the merchandise within the discount period.oth companies use perpetual inventory systems.
a.Prepare journal entries in the accounting records of Golf World to account for this sale and the subsequent collection.ssume the original cost of the merchandise to Golf World had been $6,500.
b.Prepare journal entries in the accounting records of Mulligans to account for the purchase and subsequent payment.ulligans records purchases of merchandise at net cost.
c.Assume that, because of a change in personnel, Mulligans failed to pay for this merchandise within the discount period.repare the journal entry'in the accounting records of Mulligans to record payment after the discount period.