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Prepare Journal Entries Without Explanations for the Merchandising Transactions Listed

question 37

Essay

Prepare journal entries without explanations for the merchandising transactions listed below for Naveh Corporation.Assume use of the periodic inventory system.
$\begin{aligned}\text { July }1 & \text { Sold merchandise to Hobart Company for } \$ 1,000 \text {, terms } n / 15 \text {. } \\2 & \text { Purchased merchandise from Stowe Corporation for } \$ 4,000 \text {, terms } n / 15 \text {. } \\3 & \text { Gave credit to Hobart Company for merchandise returned, } \$ 100 \text {. } \\5 & \text { Purchased merchandise from Rajah Company for } \$ 5,000 \text {, terms } n / 30 \text {. } \\10 & \text { Received payment from Hobart Company for purchase of July } 1 \text {. } \\11 & \text { Returned } \$ 500 \text { in merchandise to Rajah Company for credit. } \\13 & \text { Paid Stowe Corporation in full for purchase of July } 2 \text {. } \\14 & \text { Paid Rajah Company in full for purchase of July } 5 \text {. }\end{aligned}$
$Prepare journal entries without explanations for the merchandising transactions listed below for Naveh Corporation.Assume use of the periodic inventory system. \begin{aligned} \text { July }1 & \text { Sold merchandise to Hobart Company for } \$ 1,000 \text {, terms } n / 15 \text {. } \\ 2 & \text { Purchased merchandise from Stowe Corporation for } \$ 4,000 \text {, terms } n / 15 \text {. } \\ 3 & \text { Gave credit to Hobart Company for merchandise returned, } \$ 100 \text {. } \\ 5 & \text { Purchased merchandise from Rajah Company for } \$ 5,000 \text {, terms } n / 30 \text {. } \\ 10 & \text { Received payment from Hobart Company for purchase of July } 1 \text {. } \\ 11 & \text { Returned } \$ 500 \text { in merchandise to Rajah Company for credit. } \\ 13 & \text { Paid Stowe Corporation in full for purchase of July } 2 \text {. } \\ 14 & \text { Paid Rajah Company in full for purchase of July } 5 \text {. } \end{aligned}$

Definitions:

Contribution Margin

The contribution margin represents the difference between a company's sales revenue and its variable costs. It is used to assess how much revenue contributes to covering fixed costs and generating profit.

Break-Even Analysis

An economic computation identifying the moment when income matches the expenses involved in generating that income.

Profit Goal

A financial objective set by a business or organization aiming to achieve a specific amount of profit over a certain period.

MBO Cycle

Management by Objectives (MBO) Cycle refers to the systematic process of defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in the organization.