Asked by Krystal Phengsomphone on May 01, 2024
Verified
Sampson Co. sold merchandise to Batson Co. on account, $46,000, terms 2/15, net 45. The cost of the goods sold is $38,500. The Batson Co. paid the invoice within the discount period. Prepare the entries that both Sampson and Batson Companies would record for the above. Assume both Sampson and Batson use a perpetual inventory system.
Perpetual Inventory System
An accounting method that records inventory purchases or sales in real-time through the use of computerized systems.
Invoice Payment
Invoice Payment refers to the process of paying off the amount owed for goods or services received, as documented by an invoice issued by the supplier or service provider.
Discount Period
The time period during which a payment can be made at a discounted rate before the full amount becomes due.
- Absorb and put into action the perpetual inventory system for documenting transactions.
- Chronicle sales-related transactions, accounting for the consequences of returns and sales allowances.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
Sampson Company Journal Entries: Batson Company Journal Entries:
Learning Objectives
- Absorb and put into action the perpetual inventory system for documenting transactions.
- Chronicle sales-related transactions, accounting for the consequences of returns and sales allowances.