Asked by Christopher Flores on Apr 24, 2024
On March 15, Monroe Sales sells $9,525.00 on account to Garrison Brewer with terms of 2/10, n/30. The cost of goods sold was $6,905.00.(a) Journalize the sale and the recognition of the cost of the sale.(b) On March 20, a $125.00 credit memo is given to Garrison Brewer due to merchandise that was the wrong color. Journalize this event. The cost of the returned merchandise was $65.00.(c) On March 25, Garrison Brewer submits payment in full. Journalize this event.
Credit Memo
A document issued by a seller to a buyer, reducing the amount that the buyer owes to the seller typically due to a return or an error in billing.
Recognition of Cost
The accounting principle that requires expenses to be recorded in the period in which they are incurred, regardless of when the payment is made.
Merchandise Sold
Merchandise sold refers to the goods that have been purchased by customers from a company, resulting in revenue.
- Gain an understanding of and apply the perpetual inventory system to record transactions.
- Document transactions related to sales, integrating the implications of returns and allowances in sales.
Learning Objectives
- Gain an understanding of and apply the perpetual inventory system to record transactions.
- Document transactions related to sales, integrating the implications of returns and allowances in sales.
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