Task: Markup on all sales is 25%. for example, a retail price of $100.00 means the wholesale price is $80.00 ($80.00 x 1.25 = $100.00). Purchases are recorded at net price. For example, a purchase of a $1,000.00 item on terms of 2/10, net 30 is booked at $980.00
December 31 (Wednesday)
1.) Sold merchandise to the following.
| Customer's Name Terms Sales Amount |
| Zenith Music 3/10,n/30 $800.00 |
| Audio Court n/30 $1,0000 .00 |
2.) Paid the following creditors . Calculate discounts if appropriate .
| Creditor's Name Terms Amount |
| Office Equipment Company n/30 $500 .00 |
| Tusk Music Supply 2/10,n/30 2,000 .00 |
| Advent Music Supply n/30 250 .00 |
| Local Supply n/30 300 .00 |
3.) Received payment from the following customers . The amounts shown do not include any discounts. You must determine if a discount is appropriate, and if so, how much. Remember, do not apply the discount on the sales tax portion of the accounts receivable balance .
| Customer's Name Terms Sales Amount |
| Carol Jason n/30 $300.00 |
| Knotes, Inc. 2/10,n/30 275.00 |
| Zenith Music 3/10,n/30 120.00 |
4.) The $100.00 delivery expense recorded on December 30 was actually freight on the December 30 purchase from Memrex Music .
5.) Racer High School returned $ 150 .00 worth of merchandise purchased an December 30. Madison Music gave the school a cash refund .
6.) Paid $ 75.00 for December delivery expense .
7.) Mr. Madison informed you that the December 18 sale to Louise Music Center was being financed for 90 days by Madison Music Store . The note is for $3,750 .00 . Began accruing interest at 12% annually on December 20 . Mr. Madison recorded the transaction on the 18th as an accounts receivable .