Prepare Journal Entries to Record the Following Merchandising Transactions of Margin

question 16

Essay

Prepare journal entries to record the following merchandising transactions of Margin Company,which applies the perpetual inventory system and the gross method of recording invoices.Margin Company offers all of its credit customers credit terms of 2/10,n/30.
$$\begin{array} { | l | l | } \hline \text { May } 3 & \begin{array} { l } \text { Sold merchandise to Sting Company for } \$ 5,600 , \mathrm {~F} O \mathrm {~B} \text { shipping point, } \\\text { invoice dated May 4. The merchandise had cost } \$ 3,000 .\end{array} \\\hline \text { May } 8 & \begin{array} { l } \text { Sold merchandise to Skeet Company for } \$ 3,300 , \mathrm { FOB } \text { shipping point, } \\\text { invoice dated May } 8 \text {. The merchandise had a cost of } \$ 1,500 .\end{array} \\\hline \text { May 13 } & \text { Received the balance due from Sting Company within the discount period. } \\\hline \text { May } 14 & \begin{array} { l } \text { Issued a credit } \$ 300 \text { credit memorandum to Skeet Company for an } \\\text { allowance on defective merchandise. }\end{array} \\\hline \text { May } 17 & \begin{array} { l } \text { Received the balance due from Skeet Company within the discount } \\\text { period. }\end{array} \\\hline\end{array}$$

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Definitions:

Instrumental Value

The importance or worth of something based on its utility in achieving an end or serving as a means to facilitate a goal.

Rationality Strategy

An approach that emphasizes logical, systematic decision-making and problem-solving.

Gift Certificate

A pre-paid voucher that can be used as payment for goods or services at a specific retailer or establishment.

Denial of Injury

A defense mechanism or rationalization where an individual justifies harmful actions by claiming no one was hurt or the harm was insignificant.