Ex. 207
Newell Company completed the following transactions in October:
Credit Sales Sales Returns Date of
Date Amount Terms Date AmountCollection
Oct.3$ 9002/10, n/30Oct.8
Oct.111,2003/10, n/30Oct. 14$ 200Oct.16
Oct.175,0001/10, n/30Oct. 201,000Oct.29
Oct.211,7002/10, n/60Oct. 23200Oct.27
Oct.232,0002/10, n/30Oct. 27300Oct.28
Ex. 207
(Cont.)
Instructions
(a)Indicate the cash received for each collection. Show your calculations.
(b)Prepare the journal entry for the
(1)Oct. 17 sale. The merchandise sold had a cost of $3,500.
(2)Oct. 23 sales return. The merchandise returned had a cost of $140.
(3)Oct. 28 collection.
Newell uses a perpetual inventory system.
Ex. 208
The following information (in 000) is available for Ling Company:
Debit Credit
Retained Earnings¥ 50,000
Dividends¥ 35,000
Sales Revenue510,000
Sales Returns and Allowances20,000
Sales Discounts7,000
Cost of Goods Sold357,000
Freight-Out2,000
Advertising Expense15,000
Interest Expense19,000
Salaries and Wages Expense45,000
Utilities Expense18,000
Depreciation Expense7,000
Interest Revenue25,000
Instructions
Using the above information, prepare the closing entries for Ling Company.
35,000