Question

prepare the journal entries to record the following sales transactions in Martines Corp.'s books. Martines uses a perpetual inventory system

Jan. 2 5 6 11 Martinez sold $48,500 of goods to Xtra Inc., terms 2/10, n/45, FOB destination. The cost of the goods sold was $27,160. The appropriate company paid freight costs of $800. Xtra returned $6,000 of the merchandise purchased from Martinez on January 2, because it was not needed. The cost of the merchandise returned was $3,360, and it was restored to inventory. Martinez received the balance due from Xtra. Date Account Titles and Explanation Debit Credit Jan. 2 (To record credit sale) (To record cost of goods sold) (To record return of goods) (To record cost of goods returned)

Answer 1

Journal entry

Date	account and explanation	Debit	Credit
Jan 2	Account receivable	48500
	Sales revenue		48500
	(To record sales)
	Cost of goods sold	27160
	Inventory		27160
	(To record cost of goods sold)
Jan 5	Freight out	800
	Cash		800
Jan 6	Sales return and allowance	6000
	Account receivable		6000
	(To record return of goods)
	Inventory	3360
	Cost of goods sold		3360
	(To record cost of goods returned)
Jan 11	Cash (42500*98%)	41650
	Sales discount	850
	Account receivable (48500-6000)		42500