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Suppose Amazing. oom sells 1,000 books on acoount for $10 each (cost of these books...

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Accounting

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Suppose Amazing. oom sells 1,000 books on acoount for $10 each (cost of these books is $7,000 ), credt terms 5/20,n/45 on October 10 , to Books and More. Books and More paid the balanoe to Amazing. com on October 22 . Requirements 1. Journalize Books and More's October transactions. 2. Journal ize Amazing. oom's October transactions. Assume Amazing com uses the gross method to record sales revenue. Requirement 1. Journalize Books and More's October transactions. (Record debis first, then credits. Exclude explanations from journal entries. Assume Books and More uses the perpetual inventory system.) Oct. 10: Amazing. com sells 1,000 books on account for $10 each (cost of these books is $7,000 ), credit terms 5/20,n/45 on Cctober 10 , to Books and More. Record the entry for Books and More on this date. Oct. 22: Books and More oaid the balance to Amazino.com. Record the entrv for Books and More on this date. Oct. 10: Sold 1,000 books on account to Books and More for $10 each (cost of these books is $7,000 ), credit terms 5/20, n/45. Begin by preparing the entry to journalize the sale portion of the transaction for Amazing com. (Do not record the expense related to the sale. We will do that in the following step.)

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