34) On November 1, 2012, Everett Janitorial Supply sold merchandise for $5,000, FOB destination, 2/10, n/30. The merchandise cost $3,200. Everett paid transportation costs of $100. On November 6, 2012, merchandise of $1,000 from the Nov. 1 sale was returned. The returned merchandise had cost $600. Please provide the two journal entries to record the return.
35) On November 1, 2012, Everett Janitorial Supply sold merchandise for $5,000, FOB destination, 2/10, n/30. The merchandise cost $3,200. Everett paid transportation costs of $100. On November 6, 2012, merchandise of $1,000 from the Nov. 1 sale was returned. The returned merchandise had cost $600. Everett received payment for the balance of the sale on November 10, 2012. Please provide the journal entry to record the receipt of payment from the customer.
Learning Objective 5-4
1) When a company uses the perpetual inventory method, it should NOT be necessary to conduct a physical count of inventory.
2) The entry to close Sales discounts and Sales returns and allowances results in a debit to Income summary.
3) If a physical count of inventory indicates that the Inventory account is overstated, an additional adjusting entry is required.
4) The entry to close Cost of goods sold results in a debit to Income summary.
5) A company uses the perpetual inventory system. The inventory account balance is $50,000. An actual count of inventory reveals that actual inventory is $43,000. Which of the following would be included in the required adjusting entry?
A) A $43,000 credit to Inventory would be required.
B) A $50,000 debit to Cost of goods sold would be required.
C) A $7,000 credit to Cost of goods sold would be required.
D) A $7,000 credit to Inventory would be required.