The Following Transactions Occurred for MM's Jewelry Store During the Month

question 129

Essay

The following transactions occurred for MM's Jewelry Store during the month:
a. On May 1, the owner purchased 100 rings on account at $6,000 each. Credit terms were 2/10, net 30.
b. On May 2, the owner returned one ring.
c. On May 3, the owner sold three of the rings on account at $8,000 each to one customer. The credit terms were 2/10, net 30.
d. On May 9, the owner paid the debt due.
e. On May 15, the customer from May 3 paid for the rings.
Required:
Prepare the journal entries for the above transactions.
1. The store uses the perpetual inventory system and the gross method to record purchase discounts. Explanations are not required.
2. The store uses the periodic inventory system and the net method to record purchase discounts. Explanations are not required.

Understand the importance of incorporating working capital changes in project evaluation.

Recognize the importance of incremental cash flow principles in evaluating projects.

Understand the treatment and implications of depreciation for tax purposes.

Identify the significance of salvage value and recovery of working capital in the final year cash flow of a project.

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Definitions:

Long-Term Care

A variety of services designed to meet a person's health or personal care needs during a short or long period of time.

Individual Choice

The freedom or ability of an individual to make decisions based on personal preferences, desires, or beliefs.

Privacy

The right or condition of being free from unauthorized intrusion or disclosure of personal information.

Elder Abuse

Refers to any form of mistreatment that results in harm or loss to an older person, including physical, emotional, sexual abuse, neglect, and financial exploitation.