More Shoes, Inc

question 67

Essay

More Shoes, Inc., reported the following transactions in December:
Dec. 1 Sold merchandise on account to T. Melda, $950, terms 2/10, n/20.
Dec. 4 Sold merchandise on account to N. Moore, $880, terms 2/10, n/20.
Dec. 10 N. Moore returned $100 of merchandise.
Dec. 11 Received payment from T. Melda for the Dec. 1 purchase.
Dec. 31 Received payment from N. Moore for the balance of the Dec 4 sale.
Prepare the adjusting journal entries needed for each INDEPENDENT situation.

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Definitions:

Finance Charge

A fee representing the cost of credit or the cost of borrowing money, including interest and other related charges.

Car Loan

A financial agreement in which a lender provides funds to a borrower for the purpose of purchasing a vehicle, to be repaid with interest over a set period.

FICO Score

A score that summarizes the probability that a debtor will pay a debt and is a reliable way that creditors judge credit worthiness.

Interest

A fee paid on borrowed assets, usually calculated as a percentage of the principal.