《Survey of accounting 2th会计学 Carl S.Warren》ch04.pptVIP

On January 3 Online Solutions sells merchandise costing $1,200 for $1,800. The customer charges the purchase on a MasterCard. Transactions involving MasterCard or Visa are treated as cash sales. Cash sales of $1,800 on January 3; cost of merchandise sold, $1,200. Sales Discounts 2/10, n/30 Credit Terms The buyer is allowed a 2% discount if… …the account is paid within 10 days. The net (full) amount is due by the 30th day. Sales Discounts On January 12 Online Solutions sells merchandise on account to Omega Tech for $1,500. Credit terms are 2/10, n/30. Sales Discounts Payment is received from Omega Tech on January 22. Sales Returns and Allowances On January 13 Online Solutions issues a $2,000 credit memorandum to Krier Company for merchandise that was returned. The merchandise (cost $1,200) was sold on account. Describe the accounting for the purchase of merchandise. 4 Learning Objective On January 6 Online Solutions purchased $2,500 of merchandise on account (terms: 1/15, n/30). Recall that Online Solutions uses the perpetual system. Purchase Discounts On January 21 Online Solutions pays invoice of $1,800, terms 1/15, n/30 within the discount period. Purchase Returns and Allowances On January 22 Online Solutions returns $5,000 of merchandise purchased from Quantum Inc. Describe the accounting for transportation costs and sales taxes. 5 Learning Objective Transportation Costs Phil’s Trucking Transportation Costs On January 19 Online Solutions buys merchandise from Data Max on account, $2,900, terms FOB shipping point, and prepays the transportation cost of $150. Illustrate the dual nature of merchandising transactions. 6 Learning Objective Scully Co. (Seller) July 1. Scully Company sold merchandise on account to Burton Co., $7,500, terms FOB destination; 2/10, n/30. The cost of the merchandise sold was $4,500 July 1. Scully Company sold merchandise on account to Burton Co., $7,500, terms FOB destination; 2/10, n/30. The cost of the merchandise sold was $4,50