A credit memorandum for 156 (sales price of merchandise, 150; ...

[fagboi]

A credit memorandum for 156 (sales price of merchandise, 150; sales tax 6) was issued to a customer for goods returned that had been purchased on account. To enter this transaction properly,
 a. Accounts Receivable would be credited for 6.
   b. Accounts Receivable would be credited for 150.
   c. Accounts Receivable would be credited for 156.
   d. Accounts Receivable would not be credited.

Question 2

For each event, determine the amount of revenue to be recorded, even if 0, in May.
 
  May
  1. In May, Tom contributed 8,000 in exchange for stock in Tom's Wear, Inc.
  2. In April, Tom's Wear, Inc.'s customer ordered 1,000 of t-shirts. In May, Tom's Wear delivered the t-shirts and received the cash upon delivery.
  3. In April, Tom's Wear, Inc.'s customer ordered 2,000 of t-shirts. Tom's Wear delivered the t-shirts in May and received 2,000 in June.
  4. In April, Tom's Wear received 3,000 cash in advance for t-shirts. 2,500 of the t-shirts were delivered on May 1. The remaining 500 of t-shirts were delivered on June l.

[kiamars2010]

Answer to Question 1

c

Answer to Question 2

1. 0; 2. 1,000; 3. 2,000; 4. 2,500

[fagboi]

Excellent

[ryhom]

Great answer, keep it coming