70.2K

Verified Solution

Link Copied!

Hello need help with this whole thing. Please show work and answers thanks ! At the please prepare the general journal entries to record transactions

3.Ceres Computer Sales uses the perpetual inventory system and had the following transactions during December. Dec. 1 Sold merchandise on credit for $5000, terms 3/10, n/30. The items sold had a cost of S3500 Dec 3 Purchased merchandise for cash, $720. Dec 4 Purchased merchandise on credit for $2600, terms 1/20, n/30. Dec 5 Issued a credit memorandum for $300 to a customer who returned merchandise purchased November 29. The returned items had a cost of $210. Dec 11 Received a payment for merchandise sold December 1 Dec 15 Received a credit memorandum for the return of faulty merchandise purchased on December 4 for $600 Dec 18 Paid freight charges of $200 for merchandise ordered last month (FOB shipping point) Dec 23 Paid for the merchandise purchased December 4 less the portion that was returned. Dec 24 Sold merchandise on credit for $7000, terms 2/10, n/30. The items had a cost of $4900 Dec 31 Received payment for merchandise sold on December 24 Required: Prepare the general journal entries to record these transactions. 4. Using the information provided in number 3, if the beginning merchandise inventory was $10,000; calculate ending merchandise inventory b. Calculate gross profit earned in number 3 c. Using the information provided in number 3, if the beginning accounts receivable was $800, complete ending accounts receivable on 12-31

Answer & Explanation Solved by verified expert

See Answer