Chapter 5

Card Set Information

Chapter 5
2011-11-10 22:01:49
Journal Entries

Accounting for merchandising business
Show Answers:

  1. Cash Sales
  2. cost of merchandise sold
  3. paid credit card processing fees
  4. Sales on Account
  5. Receive cash on account
  6. the sales return and allowance
  7. A buyer may pay for merchandise and then later return it. In this case, the seller may do one of the following:
    Issue a credit that is applied against the buyer's other receivables or Issue a cash refund.
  8. cash purchases of merchandise are recorded as follows:
  9. Purchases of merchandise on account are recorded as follows:
  10. Invoice and its payment at the end of the discount period as follows:
  11. does not take the discount, but instead pays the invoice
  12. Purchases Returns and Allowances
    debit memo
  13. FOB Destination
    This term means that the seller pays the freight costs from the shipping point to the buyer's final destination.
  14. FOB Shipping point
    This term means that the buyer pays the freight costs from the shipping point to the final destination.