The transactions listed below are typical of those involving Southern Sporting Goods (SSG) and Sports R Us (SRU). SSG is a wholesale merchandiser and SRU is a retail merchandiser. Assume all sales of merchandise from SSG to SRU are made with terms n/30, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended December 31. a. SSG sold merchandise to SRU at a selling price of $125,000. The merchandise had cost SSG $94,000. b. Two days later, SRU complained to SSG that some of the merchandise differed from what SRU had ordered. SSG agreed to give an allowance of $3,000 to SRU. SRU also returned some sporting goods, which had cost SSG $12,000 and had been sold to SRU for $16,500. C. Just three days later SRU paid SSG, which settled all amounts owed. 2. Prepare the journal entries SSG would record. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
The transactions listed below are typical of those involving Southern Sporting Goods (SSG) and Sports R Us (SRU). SSG is a wholesale merchandiser and SRU is a retail merchandiser. Assume all sales of merchandise from SSG to SRU are made with terms n/30, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended December 31. a. SSG sold merchandise to SRU at a selling price of $125,000. The merchandise had cost SSG $94,000. b. Two days later, SRU complained to SSG that some of the merchandise differed from what SRU had ordered. SSG agreed to give an allowance of $3,000 to SRU. SRU also returned some sporting goods, which had cost SSG $12,000 and had been sold to SRU for $16,500. C. Just three days later SRU paid SSG, which settled all amounts owed. 2. Prepare the journal entries SSG would record. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter1: Overview Of Financial Reporting, Financial Statement Analysis, And Valuation
Section: Chapter Questions
Problem 1QE
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What would the journal entries be for the transactions recorded above?
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A Fl-
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Required information
(The following information applies to the questions displayed below.]
The transactions listed below are typical of those involving Southern Sporting Goods (SSG) and Sports R Us (SRU). SSG is
a wholesale merchandiser and SRU is a retail merchandiser. Assume all sales of merchandise from SSG to SRU are made
with terms n/30, and the two companies use perpetual inventory systems. Assume the following transactions between the
two companies occurred in the order listed during the year ended December 31.
a. SSG sold merchandise to SRU at a selling price of $125,000. The merchandise had cost SSG $94,000.
b. Two days later, SRU complained to SSG that some of the merchandise differed from what SRU had ordered. SSG
agreed to give an allowance of $3,000 to SRU. SRU also returned some sporting goods, which had cost SSG $12,000
and had been sold to SRU for $16,500.
C. Just three days later SRU paid SSG, which settled all amounts owed.
2. Prepare the journal entries SSG would record. (If no entry is required for a transaction/event, select "No Journal Entry Required"
in the first account field.)
View transaction list
nces
Journal entry worksheet
Record the receipt of payment in full from SRU,
Note: Enter debits before credits.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5391278e-ce8b-4d56-a022-146cbccccecc%2F45bf90c7-ee7d-4b2e-b4b8-6a58f1364957%2Fv9bi74j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:- El mun
A Fl-
mheducation.com/ext/map/index.html?_con%3Dcon&external_browser%3D0&launchUrl=https%253A%252F%252Fnewconnect.mheduc
rk
Saved
Required information
(The following information applies to the questions displayed below.]
The transactions listed below are typical of those involving Southern Sporting Goods (SSG) and Sports R Us (SRU). SSG is
a wholesale merchandiser and SRU is a retail merchandiser. Assume all sales of merchandise from SSG to SRU are made
with terms n/30, and the two companies use perpetual inventory systems. Assume the following transactions between the
two companies occurred in the order listed during the year ended December 31.
a. SSG sold merchandise to SRU at a selling price of $125,000. The merchandise had cost SSG $94,000.
b. Two days later, SRU complained to SSG that some of the merchandise differed from what SRU had ordered. SSG
agreed to give an allowance of $3,000 to SRU. SRU also returned some sporting goods, which had cost SSG $12,000
and had been sold to SRU for $16,500.
C. Just three days later SRU paid SSG, which settled all amounts owed.
2. Prepare the journal entries SSG would record. (If no entry is required for a transaction/event, select "No Journal Entry Required"
in the first account field.)
View transaction list
nces
Journal entry worksheet
Record the receipt of payment in full from SRU,
Note: Enter debits before credits.
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