Question

Stephen Company sold $3,000 of merchandise on account to Elijah Company The credit terms were 2/10, n/60. The cost of the merchandise was $1,800 March 4 March 6 Elijah Company paid transportation cost of $100 on the March 4 purchase from Stephen Company March 8 Stephen Company sold $2,000 of merchandise on account to Elijah Company The credit terms were n/40. The cost of the merchandise was $1,400. March 10 Stephen Company paid transportation cost of $100 for delivery of merchandise sold to Elijah Company on March 8 March 16 Stephen Company issued Elijah Company a $400 credit memorandum for merchandise returned because the merchandise was damaged. The merchandise was purchased by Elijah Company on account on March 8. The cost of the merchandise returned was $280 March 18 Stephen Company received payment from Elijah Company for purchase of March 8 Stephen Company sold $4,800 of merchandise on account to Elijah Company The credit terms were 2/10, n/30. The cost of the merchandise was $2,880 March 21 March 22 Stephen Company received payment from Elijah Company for purchase of 4 March Stephen Company received payment from Elijah Company for purchase of 21 March March 31

Answer 1

				(All amounts in $)
Date	Particulars	LF No	Debit	Credit
March 4	Elijah Company a/c Dr		3,000
	To sales a/c			3,000
March 4	Cost of Goods sold a/c Dr		1,800
	To Inventory a/c			1,800
March 6	Cost of Goods sold a/c Dr		100
	To Elijah Company a/c			100
March 8	Elijah Company a/c Dr		2,000
	To sales a/c			2,000
March 8	Cost of Goods sold a/c Dr		1,400
	To Inventory a/c			1,400
March 10	Cost of Goods sold a/c Dr		100
	To Elijah Company a/c			100
March 16	Elijah Company a/c Dr		400
	To Sales a/c			400
March 16	Inventory a/c Dr		280
	To Cost of goods sold a/c			280
March 18	Cash/bank a/c Dr (2000-400)		1,600
	To Elijah company a/c			1,600
March 21	Elijah Company a/c Dr		4,800
	To sales a/c			4,800
March 21	Cost of Goods sold a/c Dr		2,880
	To Inventory a/c			2,880
March 22	Cash/bank a/c Dr		3,000
	To Elijah company a/c			3,000
March 31	Cash/bank a/c Dr (4800-96)		4,704
	Sales a/c Dr		96
	To Elijah company a/c			4,800