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question nicole 39 s getaway spa ngs has been so successful that nicolehas decided t 4289137

Question

Nicole's Getaway Spa (NGS) has been so successful that Nicolehas decided to expand her spa by selling merchandise. She sellsthings such as nail polish, at-home spa kits, cosmetics, andaromatherapy items. Nicole uses a perpetual inventory system and isstarting to realize all of the work that is created when inventoryis involved in a business. The following transactions were selectedfrom among those completed by NGS in August. Prepare journalentries for each transaction.

Aug.2

Sold 10 items of merchandise to Salon World on account at aselling price of $5,500 (total); terms 2/10, n/30. The goods costNGS $3,575.

Aug.3

Sold 5 identical items of merchandise to Cosmetics R Us onaccount at a selling price of $3,200 (total); terms 2/10, n/30. Thegoods cost NGS $2,560.

Aug.6

Cosmetics R Us returned one of the items purchased on August 3.The item could still be sold by NGS in the future and credit wasgiven to the customer.

Aug.10

Collected payment from Salon World, fully paying off the accountbalance.

Aug.20

Sold two at-home spa kits to Meghan Witzel for $1,200 cash. Thegoods cost NGS $384.

Aug.22

Cosmetics R Us paid its remaining account balance in full.

 

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