Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 6) abc company sold def company shoes for $67,000

6) ABC Company sold DEF company shoes for $67,000 on account. The shoes cost ABC $30,000....

Free

70.2K

Verified Solution

Question

Accounting

  • 6) ABC Company sold DEF company shoes for $67,000 on account.The shoes cost ABC $30,000. Write the journal entries for both ABCand DEF showing the sale by ABC followed by the receipt of payment& the purchase by DEF followed by the payment to ABC.
  • 7) ABC Company sold DEF company shoes for $67,000 on account onterms 2/10 net 30. The shoes cost ABC $30,000. Write the journalentries for both ABC and DEF showing the sale by ABC followed bythe receipt of payment & the purchase by DEF followed by thepayment to ABC. They paid with the discount period.

Please create journal entries.  

Answer & Explanation Solved by verified expert
3.8 Ratings (529 Votes)

6

Account Debit Credit
ABC Company:
Accounts receivable $       67,000
Sales revenue $       67,000
Cost of goods sold $       30,000
Inventory $       30,000
[Entry for sale]
Cash $       67,000
Accounts receivable $       67,000
[Entry for receipt]
DEF Company:
Inventory $       67,000
Accounts payable $       67,000
[Entry for purchase]
Accounts payable $       67,000
Cash $       67,000
[Entry for payment]

7

Discount = 67,000 X 2% = 1,340

Account Debit Credit
ABC Company:
Accounts receivable $       67,000
Sales revenue $       67,000
Cost of goods sold $       30,000
Inventory $       30,000
[Entry for sale]
Sales discounts $          1,340
Cash $       65,660
Accounts receivable $       67,000
[Entry for receipt with in discount period]
DEF Company:
Inventory $       67,000
Accounts payable $       67,000
[Entry for purchase]
Accounts payable $       67,000
Cash $       65,660
Purchase discounts $          1,340
[Entry for payment]
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Programming
1.2K views

C11 standard.... file1.txt: DAY Blackberry Blueberry Pear Mango apple Monday 60 35 32 16 30 Tuesday 44 22 34...

Physics
1.2K views

Water falls from a height of 210 m Assuming whole of energy due to fall...

Basic Math
1.2K views

The coordinates of the rectangle are (2, 2), (2, -2), (-2, -2), and (-2, 2)....

Basic Math
1.2K views

Using our quadratic equationknowledge match the following scenarios.1. Hitting a golf ball on the moon2....

Statistics
1.2K views

E and F are disjoint events then P E or F P E and F...

Calculus
1.2K views

Factor the following polynomial 4x 32x 64 4x 32x 64

Algebra
1.2K views

ometors 02 1 1 Want lenghts 2 F PO 0 2 mete R 5 meters...

Accounting
1.2K views

The management of Unter Corporation, an architectural design firm, is considering an investment...

Accounting
1.2K views

Cairns owns 70 percent of the voting stock of Hamilton, Inc. The parent's interest was...

Accounting
1.2K views

! Required Information [The following information applies to the questions displayed below.] Warnerwoods...

Accounting
1.2K views

Required Information [The following information applies to the questions displayed below.] On December 1, Jasmin...

Accounting
1.2K views

value 5.00 points Willow Products expects the following sales of its single product: March 5,100...