Craig's Snowboards Uses the Perpetual Inventory System and the Gross

question 34

Essay

Craig's Snowboards uses the perpetual inventory system and the gross method of accounting for sales,and had the following sales transactions during June:
$\begin{array}{|l|l|}\hline \text {June 2 } & \begin{array}{l}\text { Sold merchandise to General Sports Store on credit for } \$ 4,800 \text {, terms } 1 / 15, \\\text { n }/ 60 . \text { The items sold had a cost of } \$ 2,700 .\end{array} \\\hline & \text { General Sports Store returned merchandise that had a selling price of } \\\text { June 4 } & \$ 200 . \text { The cost of the merchandise returned was } \$ 110 . \\\hline \text { June 13 } & \begin{array}{l}\text { General Sports Store paid for the merchandise sold on June } 2 \text { less the } \\\text { return, taking any appropriate discount earned. }\end{array} \\\hline\end{array}$

Prepare the journal entries that Craig's Snowboards must make to record these transactions.

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Definitions:

Personal Selling Process

describes the sequence of steps salespeople follow to persuade potential customers to purchase a product or service.

Cultural Setting

The environment and context influenced by societal norms, values, practices, and beliefs in which individuals or groups operate.

Stimulus-Response Selling

A sales technique that focuses on triggering a positive customer response through specific stimuli or cues.

Social Selling

The practice of using social media networks to identify, connect with, understand, and nurture sales prospects.