Solved

Forrest's Cycle Shop Uses a Perpetual Inventory Accounting System and the Gross

Question 237

Essay

Forrest's Cycle Shop uses a perpetual inventory accounting system and the gross method of accounting for sales had the following transactions during the month of July:
 July 3 Sold merchandise to a customer on credit for $600, terms 2/10,n30. The  cost of the merchandise sold was $350. July 4 Sold merchandise to a customer for cash of $425. The cost of the  merchandise was $250.July 6 Sold merchandise to a customer on credit for $1,300, terms 2/10,n/30. The cost of the merchandise sold was $750.July 8 The customer from July 3 returned merchandise with a selling price of $100. The cost of the merchandise returned was $55.July 15 The customer from July 6 paid the full amount due, less any appropriate  discounts earned.  July 31 The customer from July 3 paid the full amount due, less any appropriate  discounts earned. \begin{array} { | l | l | } \hline \text { July } 3 & \begin{array} { l } \text { Sold merchandise to a customer on credit for } \$ 600 \text {, terms } 2 / 10 , \mathrm { n } 30 . \text { The } \\\text { cost of the merchandise sold was } \$ 350 .\end{array} \\\hline \text { July } 4 & \begin{array} { l } \text { Sold merchandise to a customer for cash of } \$ 425 \text {. The cost of the } \\\text { merchandise was } \$ 250 .\end{array} \\\hline \text {July } 6 & \begin{array} { l } \text { Sold merchandise to a customer on credit for } \$ 1,300 , \text { terms } 2 / 10 , \mathrm { n } / 30 . \\\text { The cost of the merchandise sold was } \$ 750 .\end{array} \\\hline \text {July } 8 & \begin{array} { l } \text { The customer from July } 3 \text { returned merchandise with a selling price of } \\\$ 100 \text {. The cost of the merchandise returned was } \$ 55 .\end{array} \\\hline \text {July } 15 & \begin{array} { l } \text { The customer from July } 6 \text { paid the full amount due, less any appropriate } \\\text { discounts earned. }\end{array} \\\hline \text { July } 31 & \begin{array} { l } \text { The customer from July } 3 \text { paid the full amount due, less any appropriate } \\\text { discounts earned. }\end{array} \\\hline\end{array}
Prepare the required journal entries that Forrest's Cycle Shop must make to record these transactions.

Correct Answer:

verifed

Verified

None...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents