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.

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Definitions:

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and simplify the legal rules around sales, leases, negotiable instruments, and secured transactions among states.

Writing

The act or medium of expressing thoughts, ideas, or information through the use of written symbols or characters.

Statute of Frauds

A legal principle that requires certain types of contracts to be executed in writing and signed by the party to be charged, to be enforceable.

Document Signing

The act of officially endorsing a document through a handwritten or digital signature, signifying agreement or approval.