Sampson Co

question 174

Essay

Sampson Co. sold merchandise to Batson Co. on account, $46,000, terms 2/15, net 45. The cost of the merchandise sold is $38,500. Batson Co. paid the invoice within the discount period. Prepare the entries that both Sampson and Batson would record for the above. Assume both Sampson and Batson use a perpetual inventory system.

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Definitions:

Schachter's Theory

A psychological theory proposing that emotions are the result of physiological arousal followed by a cognitive label or interpretation of the arousal, based on environmental cues.

Heider's Theory

A psychological theory suggesting that people tend to interpret and explain human behavior in terms of intentions and responsibilities.

Emotional Lability

A condition characterized by rapid, often unpredictable changes in emotional states, such as sudden episodes of crying or laughing.

Correspondent Inference

Causal attribution of behaviour to underlying dispositions.