On July 1, Ferguson Company, Inc. sold merchandise in the amount of $5,800 to Tracey Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Ferguson uses the perpetual inventory system. On July 5, Tracey returns some of the merchandise. The selling price of the merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Ferguson must make on July 5 is:
a. Sales returns and allowances - 500 Accounts receivable - 500Merchandise inventory - 350 Cost of goods sold - 350
b. Sales returns and allowances - 500 Accounts receivable - 500
c. Accounts receivable - 500 Sales returns and allowances - 500
d. Accounts receivable - 500 Sales returns and allowances - 500Cost of goods sold - 350 Merchandise inventory - 350
e. Sales returns and allowances - 350 Accounts receivable - 350
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On July 1, Ferguson Company, Inc. sold merchandise in the amount of $5,800 to Tracey Company, with credit terms of 2/10, n/30. The cost of ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
CIRP. Jason Smith is a foreign exchange trader with Citibank. He notices the following quotes. Spot exchange rate SFr1.6627/$ Six-month forward exchange rate SFr1.6558/$ Six-month $ interest rate 3.5% per year Six-month SFr interest rate 3.
Answers (1)
Suppose that Jane's company uses exponential smoothing to make forecasts. Further suppose that last period's demand forecast was for 500 units, and last period's actual demand was 480 units. Jane's company uses an alpha value of. 20.
Answers (1)
What is the difference between factor payments and profits
Answers (1)
A good or service is said to be scarce when: a. at a price of zero, there will not be enough to satisfy everyone's desire for it. b. it is offered only to high income earners. c. its price is too low. d. it cannot be transported easily. e.
Answers (1)
The united states exports corn and aircraft to the rest of the world and it imports oil and clothing from the rest of the world. do you think this pattern of trade is consistent with the principle of comparative advantage?
Answers (1)
New Questions in Business
According to the presentation, the first step in making a major purchase is: A. choosing a salesperson B. determining the features C. you want to do your research D. finding out what the taxes will be
Answers (1)
Bank Corp.'s voting stock is owned by the following individuals: Farber, 25%; Farber's mother, 15%; Farber's father, 40%; and Grosset, an unrelated person, 20%. Farber's sister sold equipment to Bank at a loss.
Answers (1)
A financial analyst is presented with information on the past records of 60 start-up companies and told that in fact only 3 of them have managed to become highly successful. He selected 3 companies from this group as the candidates for success.
Answers (1)
Sal, a production manager, knows that some of his employees are upset with a new corporate policy that eliminates a tuition reimbursement program. As a result, some of these employees are participating in soldiering.
Answers (1)
An investment project provides cash inflows of $1,275 per year for eight years. a. What is the project payback period if the initial cost is $4,100? (Do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.) b.
Answers (1)