Serene Spa Sales uses the perpetual inventory system and the gross method of accounting for purchases and sales, and had the following transactions during August.
Aug 1 345101518232431 Sold merchandise on credit for $5,000, terms 3/10,n/30. The items sold had a cost of $3,500. Purchased merchandise for cash, $2,720. Purchased merchandise on credit for $2,600, terms 1/20,n/30. Issued a credit memorandum for $3,000 to a customer who returned merchandise purchased July 20. The returned items had a cost of $2,010. Received payment for merchandise sold August 1. Received a credit memorandum from the seller for the return of defective merchandise purchased on August 4 for $600. Paid freight charges of $200 for merchandise ordered last month. (FOB shipping point) Paid for the merchandise purchased August 4 less the portion that was returned. Sold merchandise on credit for $7,000, terms 2/10,n/30. The items had a cost of $4,900 Received payment for merchandise sold on August 24.
Required:
Prepare the general journal entries to record these transactions.
Definitions:
Base-Rate Information
Statistical information that represents the prevalence or general occurrence of a particular trait, behavior, or event within a larger population.
Availability Heuristic
An instinctive mental tactic that uses the nearest instances that surface in thought while considering a certain topic, theory, strategy, or judgment.
Base-Rate Information
Base-rate information refers to the statistical likelihood of an event or characteristic within a given population, used in decision-making processes.
Stroop Effect
A demonstration of cognitive interference where the brain's reaction time slows down when processing conflicting information, such as reading the word "green" printed in red color.