Use the following information to answer the next 11 questions, SELECT ALL ANSWER

Question

Use the following information to answer the next 11 questions, SELECT ALL ANSWERS THAT APPLY On May 1, Sam Company sold $5,000 ofinventory to Bob Company. The sale was made on account and Sam granted Bob credit terms of 2/10, n/30. The inventory cost Sam Company $3,000. On May 3, Bob returned $1,000 of the inventory to Sam. (The inventory retuned by Bob cost Sam $600.) On May 9, Bob paid Sam in full for the amount due 8. Whatjournal entry will Sam record on May 3 if the perpetu al inventory system is used? a. debit Merchandise Inventory, $600; credit Cost ofGoods Sold, $600 b. debit Sales, $1,000; credit Accounts Receivable, $1,00i0 c. debit Sales, $1,000; credit Cash, $1,000 d. debit Sales Returns and Allowances, $1,000; credit Accounts Receivable, $1,000 e. debit Sales Retums and Allowances, $1,000; credit Cash, $1,000. 9. Whatjournal entry will Bob record on May 9if the periodic inventory system is used? f. g. h. ?. j. debit Accounts Payable, $4,000, credit Cash, $4,000 debit Accounts Payable, S5,000; credit Cash, $5,000 debit Accounts Payable, $4,000; credit Merchandise Inventory, $80; credit Cash, $3,920 debit Accounts Payable, $4,000, credit Purchase Discounts: $80, credit Cash, $3,920 debit Accounts Payable, $4,000; credit Purchase Retums and Allowances, $80; credit Cash, $3,920 10.What journal entry will Bob record on May9ifthe perpetual inventory systemis used? debit Accounts Payable, $4,000, credit Cash, $4,000. debit Accounts Payable, S5,000; credit Cash, $5,000. debit Accounts Payable, $4,000; credit Merchandise Inventory, $80; credit Cash, $3,920 debit Accounts Payable, $4,000; credit Purchase Discounts; $80, credit Cash, S3,920 debit Accounts Payable, $4,000; credit Purchase Retums and Allowances, $80; credit Cash, $3,920 a. b. c. d. e. 11 What journal entry will Sam record on May9? f. g. h. debit Cash, $4,000; credit Accounts Receivable, $4,000 debit Cash, $5,000; credit Accounts Receivable, $5,000 debit Cash, $3,920, debit Sales, $80; credit Accounts Receivable, $4,000 debit Cash. $3.920. debit Sales Discounts, $80. credit Accounts Receivable. $4,000 debit Cash, $3,920; debit Sales Returns and Allowances, $80; credit Accounts Receivable, $4,000. j.

Explanation / Answer

Date Account titles & Explanations Debit Credit 1-May account receivable 5,000 sales 5,000 cost of goods sold 3000 merchandise inventory 3000 3-May Sales return 1000 account receivable 1000 Merchandise inventory 600 cost of goods sold 600 9-May cash 3920 sales discount 4000*2% 80 account receivable 4000 8) option d   option a 9) option i 10) option c 11) option i

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