Question

Comprehensive Accounting Cycle Review 7 (Part Level Submission) On December 1, 2019, Tamarisk, Inc. had the following account balances. Cash Notes Receivable Accounts Receivable Inventory Prepaid Insurance Equipment Debit $17,800 Accumulated Depreciation-Equipment 2,500 Accounts Payable 7,100 Common Stock 15,900 Retained Earnings 1,600 27,600 $72,500 Credit $2,900 6,200 52,400 11,000 $72,500 During December, the company completed the following transactions. Dec. 7 Received $3,600 cash from customers in payment of account (no discount allowed). 12 Purchased merchandise on account from Vance Co. $12,900, terms 1/10, n/30. 17 Sold merchandise on account $16,300, terms 2/10, n/30. The cost of the merchandise sold was $9.200. 19 Paid salaries $2,100. 22 Paid Vance Co. in full, less discount. 26 Received collections in full, less discounts, from customers billed on December 17. 31 Received $2,800 cash from customers in payment of account (no discount allowed). Adjustment data: 1. Depreciation $200 per month. 2. Insurance expired $400.

Answer 1

Journal Entries :-

Date	Particulars	Debit($)	Credit($)
Dec. 7	Cash	3600
	Accounts Receivable		3600
	(Being Cash Received from Accounts Receivable)
Dec. 12	Inventory	12900
	Accounts Payable		12900
	(Being Purchase of merchandise on account, on terms 1/10, n/30)
Dec.17	Accounts Receivable	16300
	Sales Revenue		16300
	(Being record sales on Accounts, on terms 2/10, n/30)
Dec.17	Cost of Goods Sold	9200
	Inventory		9200
	(Being Record cost of goods sold)
Dec.19	Salaries	2100
	Cash		2100
	(Being Record Salaries Paid in Cash)
Dec.22	Accounts Payable	12900
	Purchase Discount ($12900*1%)		129
	Cash ($12900-$129)		12771
	(Being Amount Paid to Account Payables)
Dec.26	Cash ($16300-$326)	15974
	Sales Discount (16300*2%)	326
	Accounts Receivable		16300
	(Being Amount Received from Accounts Receivables)
Dec.31	Cash	2800
	Account Receivable		2800
	(Being Amount Received from Accounts Receivables)