Prepare the following journal entries for Dice Company, which uses a perpetual inventory system. (a) On January...

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Finance

Prepare the following journal entries for Dice Company, which usesa perpetual inventory system.
(a) On January 3, 2018, Dice Company sold $40,000 of goods onaccount with terms 3/10, n/30. The goods cost $26,000.

(b) On January 5, 2018, the customer returned $2,000 of themerchandise purchased in (a) above; the cost of the merchandise is$550.
(c) On January 9, 2018, the customer paid for the goodspurchased in (a) above (net of the returned goods).
(d) On March 1, Dice Company loaned $25,000 to XYZ Company at12% interest. XYZ Company signed a promissory note and will payback the principal plus interest in one year. Record the journalentry for the loan.
(e) Prepare the journal entry to record the accrual ofinterest on March 31.

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4.4 Ratings (598 Votes)

a]	Accounts receivable	$ 40,000
	Sales		$ 40,000

	Cost of goods sold	$ 26,000
	Merchandise inventory		$ 26,000

b]	Sales	$ 2,000
	Accounts receivable		$ 2,000

	Merchandise inventory	$ 550
	Cost of goods sold		$ 550

c]	Cash [(40000-2000)*97%]	$ 36,860
	Sales discounts	$ 1,140
	Accounts receivable		$ 38,000

d]	Notes receivable	$ 25,000
	Cash		$ 25,000

e]	Interest receivable [2500012%10/12]	$ 2,500
	Interest income		$ 2,500

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Prepare the following journal entries for Dice Company, which usesa perpetual inventory system.(a) On January 3, 2018, Dice Company sold $40,000 of goods onaccount with terms 3/10, n/30. The goods cost $26,000.(b) On January 5, 2018, the customer returned $2,000 of themerchandise purchased in (a) above; the cost of the merchandise is$550.(c) On January 9, 2018, the customer paid for the goodspurchased in (a) above (net of the returned goods).(d) On March 1, Dice Company loaned $25,000 to XYZ Company at12% interest. XYZ Company signed a promissory note and will payback the principal plus interest in one year. Record the journalentry for the loan.(e) Prepare the journal entry to record the accrual ofinterest on March 31.