177.Sampson Co. sold merchandise to Batson Co. on account, $46,000, terms 2/15, net 45. The cost of themerchandise sold is $38,500. The Batson Co. paid the invoice within the discount period. Prepare...

177.Sampson Co. sold merchandise to Batson Co. on account, $46,000, terms 2/15, net 45. The cost of themerchandise sold is $38,500. The Batson Co. paid the invoice within the discount period. Prepare the entries thatboth Sampson and Batson Companies would record for the above. Assume both Sampson and Batson use aperpetual inventory system.

178.Which of the following costs would be included in merchandise inventory?

(a)Purchase price

(b)Insurance in transit FOB shipping point

(c)Freight for delivery FOB shipping point

(d)Repair due to negligence of receiving clerk

(e)Receiving department employee salary

(f)Cost of processing purchase orders

179.On March 4, Micro Sales makes $4,850 in sales on bank credit cards which charge a 2.5% service charge anddeposits the funds into Micro Sales' bank accounts at the end of the business day. Journalize the sales andrecognition of expense.

180.Journalize the following transactions for Armour Inc. using both the periodic inventory system and the perpetualinventory system, presented in the side-by-side format of the form provided below.

Oct.7 Sold $1,200 of merchandise on credit to Rondo Distributors, terms n/30; the cost of the merchandise was$720.

Oct. 8 Purchased merchandise, $10,000; terms FOB shipping point and 2/15, n/30; with prepaid freight charges of$525 added to the invoice.

181.What is the normal balance of the following accounts?

a.Sales Tax Payable

b.Merchandise Inventory

c.Delivery Expense

d.Cost of Merchandise Sold

e.Customer Refunds Payable

f.Estimated Returns Inventory

g.Sales

BUSPROG: Analytic