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
In the aggregate expenditures model, it is assumed that: a. gross investment (I), government purchases (G), and net exports (NX) will all increase when real GDP (Y) increases. b.
Answers (1)
Who is responsible for the preparation and integrity of the financial statements?
Answers (1)
The best way to avoid cash flow problems is A. borrowing less. B. downsizing. C. constant marketing. D. regular saving.
Answers (1)
You have invested $5,000 into a certificate of deposit for 5 years. it pays a 6% annual nominal rate, compounded semiannually. what is the value of the certificate of deposit at the end of 5 years?
Answers (1)
A registered representative wishes to put on a sales seminar. During the seminar, the RR intends to give out handouts related to a few investments and printouts of slides that will be part of the presentation.
Answers (1)
New Questions in Business
A company issued 8%, 15-year bonds with a par value of $500,000 that pay interest semiannually. The market rate on the date of issuance was 8%.
Answers (1)
involves matching the candidate's intellectual and physical skills to those of the job being filled. a. Person-organization fit b. Cognitive analytics c. Ability-job fit d. Personality-ability fit e. Personality-job fit
Answers (1)
Assume that a $1,000,000 par value, semiannual coupon US Treasury note with five years to maturity has a coupon rate of 6%. The yield to maturity (YTM) of the bond is 11.00%.
Answers (2)
The shareholders' equity of Green Corporation includes $200,000 of $1 par common stock and $400,000 par of 6% cumulative preferred stock.
Answers (1)
True or False: An interest-bearing account is an account that generates interest income on the available balance in the account. → False
Answers (1)