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On March 12, Masterson Company, Inc

Question 177

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On March 12, Masterson Company, Inc. sold merchandise in the amount of $7,800 to Forsythe Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Masterson uses the gross method of accounting for sales and a perpetual inventory system. On March 15, Forsythe was given an allowance of $600 on defective merchandise that had a cost of $350. Forsythe pays the invoice on March 20, and takes the appropriate discount. The journal entry that Masterson makes on March 20 is:


A) On March 12, Masterson Company, Inc. sold merchandise in the amount of $7,800 to Forsythe Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Masterson uses the gross method of accounting for sales and a perpetual inventory system. On March 15, Forsythe was given an allowance of $600 on defective merchandise that had a cost of $350. Forsythe pays the invoice on March 20, and takes the appropriate discount. The journal entry that Masterson makes on March 20 is: A) B) C) D) E)
B) On March 12, Masterson Company, Inc. sold merchandise in the amount of $7,800 to Forsythe Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Masterson uses the gross method of accounting for sales and a perpetual inventory system. On March 15, Forsythe was given an allowance of $600 on defective merchandise that had a cost of $350. Forsythe pays the invoice on March 20, and takes the appropriate discount. The journal entry that Masterson makes on March 20 is: A) B) C) D) E)
C) On March 12, Masterson Company, Inc. sold merchandise in the amount of $7,800 to Forsythe Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Masterson uses the gross method of accounting for sales and a perpetual inventory system. On March 15, Forsythe was given an allowance of $600 on defective merchandise that had a cost of $350. Forsythe pays the invoice on March 20, and takes the appropriate discount. The journal entry that Masterson makes on March 20 is: A) B) C) D) E)
D) On March 12, Masterson Company, Inc. sold merchandise in the amount of $7,800 to Forsythe Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Masterson uses the gross method of accounting for sales and a perpetual inventory system. On March 15, Forsythe was given an allowance of $600 on defective merchandise that had a cost of $350. Forsythe pays the invoice on March 20, and takes the appropriate discount. The journal entry that Masterson makes on March 20 is: A) B) C) D) E)
E) On March 12, Masterson Company, Inc. sold merchandise in the amount of $7,800 to Forsythe Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Masterson uses the gross method of accounting for sales and a perpetual inventory system. On March 15, Forsythe was given an allowance of $600 on defective merchandise that had a cost of $350. Forsythe pays the invoice on March 20, and takes the appropriate discount. The journal entry that Masterson makes on March 20 is: A) B) C) D) E)

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