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17 Cards in this Set
- Front
- Back
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Purchased merchandise on account from Gray’s Wholesale Supply $3,800, terms 2/10, n/30. |
Inventory Accounts Payable |
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Sold merchandise on account $2,500, terms 1/10, n/30. The cost of the merchandise sold was $1,010 |
Accounts Recievable Sales Revenue Debit: Cost of Goods Sold Credit: Inventory |
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Received credit from Gray’s Wholesale Supply for merchandise returned $400. |
Accounts Payable 400 Inventory 400 |
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Perpetual System |
Continuous Basis. |
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Received collections in full, less discounts, from customers billed on sales of $2,500 on May 2.
($2,500, terms 1/10 N/30) |
Cash 2475 Sales Discount 25 Accounts Recievable 2500 |
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Paid Gray’s Wholesale Supply in full, less discount.
(Gray’s Wholesale Supply $3,800, terms 2/10, n/30. Also, 400 in Merchandise was returned previously.) |
Accounts Payable 3400 Inventory 68 Cash 3332 |
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Purchased supplies for cash $350 |
Supplies 350 Cash 350 |
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Purchased merchandise for cash $1,300 |
Inventory 1300 Cash 1300 |
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Received refund for poor quality merchandise from supplier on cash purchase $110. |
Cash 110 Inventory 110 |
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Purchased merchandise from Amland Distributors $1,200, FOB shipping point, terms 2/10, n/30. |
Inventory 1200 Accounts Payable 1200 |
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Paid freight on May 17 purchase $160. |
Inventory 160 Cash 160 |
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Sold merchandise for cash $3,050. The merchandise sold had a cost of $2,190. |
Cash 3050 Sales Revenue 3050
Cost of Goods Sold 2190 Inventory 2190 |
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Purchased merchandise from Horvath, Inc. $720, FOB destination, terms 2/10, n/30. |
Inventory 720 Accounts Payable 720 |
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Paid Amland Distributors in full, less discount.
Amland Distributors $1,200, FOB shipping point, terms 2/10, n/30. |
Accounts Payable 1200 Inventory 24 Cash 1176
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Made refunds to cash customers for defective merchandise $80. The returned merchandise had a fair value of $40. |
Sales returns and allowences 80 Cash 80
Inventory 40 Cost of Goods Sold 40 |
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Sold merchandise on account $1,010, terms n/30. The cost of the merchandise sold was $580. |
Accounts Recievable 1010 Sales Revenue 1010
Cost of Goods sold 580 Inventory 580 |
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Income statement is what |
Sales Revenue - Sales Returns/ allowences and Sales Discounts = net sales - Cost of Goods Sold = GROSS PROFIT. |
