Craig's Snowboards uses the perpetual inventory system and the gross method of accounting for sales, and had the following sales transactions during June: June 2Sold merchandise to General Sports Store on credit for $4,800, terms 1/15, n/60. The items sold had a cost of $2,700.June 4General Sports Store returned merchandise that had a selling price of $200. The cost of the merchandise returned was $110.June 13General Sports Store paid for the merchandise sold on June 2 less the return, taking any appropriate discount earned.Prepare the journal entries that Craig's Snowboards must make to record these transactions.
What will be an ideal response?
| June 2 | Accounts receivable | 4,800 | ? |
| ? | Sales | ? | 4,800 |
| ? | Cost of goods sold | 2,700 | ? |
| ? | Merchandise inventory | ? | 2,700 |
| ? | ? | ? | ? |
| June 4 | Sales returns and allowances | 200 | ? |
| ? | Accounts receivable | ? | 200 |
| ? | Merchandise inventory | 110 | ? |
| ? | Cost of goods sold | ? | 110 |
| ? | ? | ? | ? |
| June 13 | Cash | 4,554 | ? |
| ? | Sales discounts | 46 | ? |
| ? | Accounts receivable | ? | 4,600 |
You might also like to view...
A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management terms, we could refer to this doctor as being efficient but not effective.
Answer the following statement true (T) or false (F)
Even if an individual is an at-will employee, in most states the employer is prohibited from discharging the employee for a reason that violates public policy
a. True b. False Indicate whether the statement is true or false
Internal recruitment boosts employee morale by:
A. bringing fresh thinking and energy into the firm. B. reinforcing the value of experience within the firm. C. offering employees a cash bonus for referring people to the firm. D. measuring aptitudes that relate directly to the job itself.
Vogel Corporation's cost of goods manufactured last month was $136,000. The beginning finished goods inventory was $35,000 and the ending finished goods inventory was $48,000. Overhead was overapplied by $6,000.Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?
A. $136,000 B. $117,000 C. $123,000 D. $171,000