eztomheducationcom Assignment Results 10100 Points 8510 Ques

ezto.mheducation.com Assignment Results .10/100 Points 8510% Question 2 (of 5) Award: 6.90 out of 20.00 points Exercise 4-3 Analyzing and recording merchandise transactions-both buyer and seller LO P1, P2 Santa Fe Company purchased merchandise for resale from Mesa Company with an invoice price of $24,000 and credit terms of 3/10, n/60. The merchandise had cost Mesa $16,000. Santa Fe paid within the discount period. Assume that both buyer and seller use a perpetual inventory system 1(a) Prepare entries that the buyer should record for the purchase No Event Debit 24,000 Accounts payable Cash 720 23 280 1(b) Prepare entries that the buyer should record for the cash payment nt General Journal Debit Credit Accounts payable 24,000 Merchandise inventory 24,000 2(a) Prepare entries that the seller should record for the sale

Solution

Exercise 4-3.

3.

4-14.

4-1A.

1(a) Entry to record purchase by the buyer
No.	Event	Account Title	Debit	Credit
1	1	Merchandise Inventory	24000
		Accounts Payable		24000
1(b) Entry to record cash payment by the buryer
No.	Event	Account Title	Debit	Credit
1	1	Accounts Payable	24000
		Merchandise Inventory		720
		Cash		23280
2(a) Entry to record sale by the seller
No.	Event	Account Title	Debit	Credit
1	1	Accounts Receivable	24000
		Sales		24000
		(Salel of inventory on account)
	2	Cost of goods sold	16000
		Merchandise Inventory		16000
		(Cost of the goods sold)
2(b) Entry to record cash payment received by the seller
No.	Event	Account Title	Debit	Credit
1	1	Cash	23280
		Sales Discount	720
		Accounts Receivable		24000