- Which of the following accounts usually has a debit balance?
|Sales Tax Payable|
|Allowance for Doubtful Accounts|
- Isaac Co. sells merchandise on credit to Sonar Co in the amount of $9,600. The invoice is dated on April 15 with terms of 1/15, net 45. If Sonar Co. chooses not to take the discount, by when should Sonar make the payment?
|None of the above.|
- Under the periodic inventory system, all purchases of merchandise are debited to the account entitled
|Cost of Merchandise Available for Sale|
- The Corbit Corp. sold merchandise on account for, $7,200. Corbit Corp. utilizes the periodic inventory system. The cost of the merchandise sold was $3,950. The journal entry(s) to record this transaction would be
Cost of Merchandise Sold 3,950
Merchandise Inventory 3,950
1) FRIEGHT IN.
- All of the given accounts have credit balance. Whereas, Freight in is the expense and have a debit expense.
2) MAY 30
- Sonar Co is allowed to take discount of 1% if it makes payment by April 30.
- if sonar co chooses not to take any discount, it should make the payment after the maturity date i.e., any date after May 15.
- All purchases of merchandise under periodic inventory system is debited to purchases.
4) Journal entry :
- Account Receivable. $7200 Dr
Sales $7200 Cr
- Cost of merchandise sold. $3950 Dr
Merchandise inventory. $3950 Cr
ALL THE BEST