Inventory was sold on account for $48,375 which includes 7.5% sales tax. The goods were held in inventory of the seller at a cost $34,750. The contract term were FOB shipping point, 2/10 net 45. 1A. Record the JE for both the seller and buyer bellow on the initial sale Seller Buyer 1B. Record the JE for both the seller and the buyer if payments was made on the 15th day. Seller and Buyer belowwere 1C. Record the JE for both the seller and the buyer if payment was made on the 7th day. Seller Buyer

Inventory was sold on account for $48,375 which includes 7.5% sales tax. The goods were held in inventory of the seller at a cost $34,750. The contract term were FOB shipping point, 2/10 net 45. 1A. Record the JE for both the seller and buyer bellow on the initial sale Seller Buyer 1B. Record the JE for both the seller and the buyer if payments was made on the 15th day. Seller and Buyer belowwere 1C. Record the JE for both the seller and the buyer if payment was made on the 7th day. Seller Buyer

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 17Q: A seller sells $800 worth of goods on credit to a customer, with a cost to the seller of $300....

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A seller sells $800 worth of goods on credit to a customer, with a cost to the seller of $300. Shipping charges are $100. The terms of the sale are 2/10, n/30, FOB Destination. What, if any, journal entry or entries will the seller record for these transactions?
Merchandise costing $2,000 is sold for $3,000 on terms 2/10, n/30. If the buyer pays within thediscount period, what amount will be reported on the income statement as net sales and as grossprofit?
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