Question

Question 2 Not yet answered Marked out of 40.00 P Flag question Journal Entries for Merchandise Transactions on Seller's and Buyer's Records-Periodic System The following are selected transactions for Jefferson, Inc., during the month of April: April 20 Sold and shipped on account to Lind Stores merchandise for $3,000, with terms of 1/10, n/30. April 27 Lind Stores returned defective merchandise billed at $300 on April 20. April 29 Received from Lind Stores a check for full settlement of the April 20 transaction. Required Prepare the necessary journal entries for (a) Jefferson, Inc., and (b) Lind Stores. Both companies use the periodic inventory system. Sellers journal entries Buyer's journal entries JEFFERSON, INC. GENERAL JOURNAL Description Debit Credit Date Apr. 20 Sold merchandise to Lind Stores terms 1/10, n/30. Merchandise returned by Lind Stores. 29 Cash Received amount due from Lind Stores.

Answer 1

Answer
A
Journal Entries - Jefferson, Inc.
Sr. No.	Date	Account Title and explanation	Debit	Credit
1	April, 20	Accounts receivables Dr	$     3,000
		To Sales		$     3,000
		(To Record the sales of material on credit)
		Sales Return & Allowance	$        300
2	April, 27	To Accounts receivables		$        300
		(To record the sales return from Lind Stores)
3	April, 29	Cash ($ 3000 - $ 300) X 99%	$     2,673
		Discount on Sales ($2700 X 1%)	$          27
		To Accounts receivables		$     2,700
		(To Record the receipt and full settlement of Lind stores)

B
Journal Entries - Lind Stores.
Date	Particulars	Debit	Credit
20-Apr	Purchases	$     3,000
	To Accounts Payable		$   3,000
27-Apr	Accounts Payable	$        300
	To Purchase returns and allowances		$      300
29-Apr	Accounts Payable	$     2,700
	To Cash		$   2,673
	To Purchase discount		$        27

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