Asked by Summer Garrett on Jul 22, 2024
Verified
On June 15, Melo Park purchased merchandise for the race track. The invoice was for $6,000, terms 2/10, n/30. On June 20, Paradise Park returned $300 of merchandise for credit. On June 25, it paid the amount owed. Fill in the blanks below.
a) The debit to Merchandise Inventory on June 15 is ________.
b) The credit to Accounts Payable on June 15 is ________.
c) The credit to Merchandise Inventory on June 20 is ________.
d) The credit to Cash on June 25 is ________.
e) The credit to Merchandise Inventory on June 25 is ________.
Merchandise Inventory
Goods that a company holds for sale to customers, considered an asset on the balance sheet.
- Proficiency in registering transactions for acquiring, disbursing, and returning merchandise within a continuous stock-keeping system.
- Master the fundamentals of credit conditions and their repercussions on accounting journal entries.
- Master the calculation and application of discounts on purchases within the discount period.
Verified Answer
PJ
Learning Objectives
- Proficiency in registering transactions for acquiring, disbursing, and returning merchandise within a continuous stock-keeping system.
- Master the fundamentals of credit conditions and their repercussions on accounting journal entries.
- Master the calculation and application of discounts on purchases within the discount period.