Question

Use the following information to complete questions 51-52 Presented below are transactions for Amazing Retailer Inc October 20 Sold merchandise for $10.000 count to Dixtyd terms 2/10, 30, FOB shipping point. The merchandise had a cost of $18000 Freight charges, 5750, were paid by the appropriate company October 21. Dusty returned 5000 of merchandise for credit on account. The merchandise originally cost $3000 and was restored to memory October 29 Dixty paid Amazing Retailer Inc. 51. Assuming the company uses a perpetual inventory system, the journal entries to record the above transactions would be: October 20 Accounts Receivable Salles 30,000 30,000 Cost of Goods Sold Merchandise Inventory October 21 Sales Returns and Allowances Accounts Receivable 18,000 5.000 5000 3,000 3,000 24,500 500 25,000 October 29 Merchandise Inventory Cost of Goods Sold Cach Sales Discount ........... Accounts Receivable October 20 Accounts Receivable 30.000 30,000 Sales 18.000 18,000 Cost of Goods Sold Merchandise Inventory Merchandise Inventory.... Cach October 21 5.000 Sales Returns and Allowances Accounts Receivable 5,000 3.000 October 29 Merchandise Inventory Cost of Goods Sold Cash Sales Discount.. . Accounts Receivable.... 500 25,000 (c) October 20 Accounts Receivable Sales 30,000 October 21 Sales Returns and Allowances Accounts Receivable 5,000 October 29 Cash .............. Accounts Receivable 25,000 October 20 Accounts Receivable Sales 30.000 Cost of Goods Sold Merchandise Inventory 18,000 October 21 Sales Returns and Allowances Accounts Receivable 5,000 3.000 October 29 Merchandise Inventory... Cost of Goods Sold Cash..... Accounts Receivable 25.000 25,000

Answer 1

51.

Correct option is a.

52.

Correct option is a or c both because both the entries are same.

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