Problem 4: Sales Operations (17 marks) Fong's Furniture Store had the following transactions during the...
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Accounting
Problem 4: Sales Operations (17 marks) Fong's Furniture Store had the following transactions during the month of December: Dec 1 Sold merchandise on credit for $5,000, terms 3/10, n/30. 3 Sold merchandise for cash, $720. 4 Sold merchandise on credit for $2,600, terms 1/20, n/30. 5 Paid a refund of $300 to a customer who returned merchandise he had purchased for cash on November 29. 10 Received payment for merchandise sold December 1. 15 Sold merchandise to Mr Blue, who charged the $2,500 total sales price to his Mastercard credit card. Mastercard charges a 2% credit card fee 18 Collected $98 cash from customer sales on credit terms 2/10, n/30, all received within the discount period. 25 Received payment for merchandise sold December 4. 28 Sold merchandise on credit for $3,000, terms 2/10, n/30 30 The customer returned $350 merchandise purchased on December 28, as the furniture was the wrong design. The return was accepted by Wong's. Required: a) Prepare the general journal entries to record these transactions. You do not have to account for cost of sales. (12 marks) b) Show how the accounts related to the transactions above should be reported on the store's income statement for the month of December
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