Question

inventory system and the gross method. Oct. i Sold fair trade merchandise for $3,400, with credit terms n/30, invoice dated October 1. The cost of the merchandise is $1,850. 6 The customer in the October 1 sale returned $340 of fair trade merchandise for full credit. The merchandise, which had cost $185, is returned to inventory. 9 Sold recycled leather merchandise for $1,650, with credit terms of 1/10, n/30, invoice dated October 9. Cost of the 11 Received payment for the amount due from the October 1 sale less the return on October 6. View transaction list Journal entry worksheet 2 3 4 5 6 7 Sold fair trade merchandise for $3,400, with credit terms 1/30, invoice dated October 1. Note: Enter debits before credits. General Journal Debit Credit Date Oct 01 Record entry Clear entry View general journal

Answer 1

Journal entry

Date	General Journal	Debit	Credit
Oct 1	Account receivable	3400
	Sales revenue		3400
	Cost of goods sold	1850
	Merchandise inventory		1850
Oct 6	Sales return and allowance	340
	Account receivable		340
	Merchandise inventory	185
	Cost of goods sold		185
Oct 9	Account receivable	1650
	Sales revenue		1650
	Cost of goods sold	1210
	Merchandise inventory		1210
Oct 11	Cash (3400-340)	3060
	Account receivable		3060