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Journalize the Following Transactions for a Merchandiser That Uses the Gross

question 31

Essay

Journalize the following transactions for a merchandiser that uses the gross method for recording sales and a perpetual inventory system.
On January 8,inventory was sold for $7,000 on account.Credit terms were 2/15,n/30 (cost $5,500).On January 31,cash was received in full settlement of the January 8 sale.Omit explanations.


Definitions:

Bureau of Consumer Financial Protection

A U.S. government agency that ensures consumers are treated fairly by banks, lenders, and other financial companies.

Payee

The individual or entity to whom a payment is to be made or is made.

Certificate of Deposit

A savings certificate entitling the bearer to receive interest, which has a fixed maturity date and specified fixed interest rate.

Acknowledgement

The act of recognizing or admitting the truth, validity, or legality of something.

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