Austin's Pub Supply uses the periodic inventory system and the gross method of accounting for sales. The company had the following sales transactions during August: August 2Sold merchandise to Jo's Pub and Grub on credit for $3,750, terms 2/15, n/60. The items sold had a cost of $1,200. August 4 Jo's Pub and Grub returned merchandise that had a selling price of $300. The cost of the merchandise returned was $110.August 13Jo's Pub and Grub paid for the merchandise sold on August 2, taking any appropriate discount earned.Prepare the journal entries that Austin's Pub Supply must make to record these transactions.
What will be an ideal response?
| Aug. 2 | Accounts receivable | 3,750 | ? |
| ? | Sales | ? | 3,750 |
| Aug. 4 | Sales returns and allowances | 300 | ? |
| ? | Accounts receivable | ? | 300 |
| Aug. 13 | Cash | 3,381 | ? |
| ? | Sales discounts | 69 | ? |
| ? | Accounts receivable | ? | 3,450 |
You might also like to view...
When writing an appeal letter to solicit funds, praising the audience for their past donations, and emphasizing how their contribution is needed now more than ever, will appeal to the audience's _____
A) sense of self-esteem B) quest for self-actualization C) need for love D) desire for safety E) requirement for belonging
Criminal penalties are possible under the Sherman Act
Indicate whether the statement is true or false
________ determines the structure, features, and functions of every information system
A) Differentiation strategy B) Competitive strategy C) Organizational culture D) Organizational objective
Parwin Corporation plans to sell 23,000 units during August. If the company has 8,000 units on hand at the start of the month, and plans to have 9,000 units on hand at the end of the month, how many units must be produced during the month?
A. 22,000 B. 24,000 C. 31,000 D. 32,000