Prepare all required entries for Sam Shade (buyer). #1 Points possible: 36, Tota

Question

Prepare all required entries for Sam Shade (buyer). #1 Points possible: 36, Total attempts: O Sam Shade purchased 280 lamshades at $10 each with terms of 4/15, n/30 from Lols Lamps on November 1. These Lampshades h Sam Shade returned 10 lampshades and received credit of $10 each from Lois Lamps. Lois amps will return these shades into their inventory at their original cost of $5 each. On ad a cost of $5 each to Lois Lamps. On Novemeber 5, November 15, Same Shade paid the balance owed less the return and discount a) Prepare all required entries for Sam Shade (buyer). Date Description Debit Credit 1-Nov Inventory 2800 Accounts Payable 2800 5 Nov Accounts Payablo 100 Inventory 100 15-Nov b) Prepare all required entries for Lois Lamp (seller). Date Descriptiorn Debit Credit 1-Nov 5-Nov 15-Nov

Explanation / Answer

journal entries in the books of samshade (the buyer)

debit

$

credit

$

being 280 lamshades purchased on credit for 10$ each.

debit

$

credit

$

Being purchase return of 10 lampshdes.

debit

$

credit

$

being payment made net of returns and discount.

* sales in terms of 4 / 15 means if paid within 15 days 4% discount will be given. hence as the payment is made on the 15 th of november 4 % discount is given.

journal entries in the books of louis lamps (the seller)

debit

$

credit

$

being 280 lamshades sold on credit for 10$ each.

debit

$

credit

$

being cost of 280 lamshades sold on credit for reduced from inventory

debit

$

credit

$

being 10 lamshades sold on credit for 10$ each returned.

debit

$

credit

$

being 10 lamshades sold on credit taken to stock at cost $ 5

debit

$

credit

$

being payment for the sale of lampshade recieved net of returns and discount

.

.

date particulars

debit

$

credit

$

nov 1 inventory 2800 accounts payable 2800

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