Question

Presented below are selected transactions of Concord Company. Concord sells in large quantities to other companies and also sells its product in a small retail outlet.

March 1		Sold merchandise on account to Dodson Company for $8,800, terms 6/10, n/30.
3		Dodson Company returned merchandise worth $700 to Concord.
9		Concord collected the amount due from Dodson Company from the March 1 sale.
15		Concord sold merchandise for $1,000 in its retail outlet. The customer used his Concord credit card.
31		Concord added 1.80% monthly interest to the customer’s credit card balance.

Prepare journal entries for the transactions above. (Ignore cost of goods sold entries and explanations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit

Answer 1

Ans:

Date	Title	Debit	credit
March 1	Accounts receivable	$8800
	sales		$8800
March 3	Sales return and Allowance	$700
	Accounts receivable		$700
March 9	Cash   (8100 -486)	$7614
	Sales Discount (8100 *.06)	$486
	Accounts receivable   (8800-700)		$8100
March 15	Accounts receivable	$1000
	sales		$1000
March 31	Interest receivable (1000 *1.8%*.1/2 )	$9
	Interest expense		$9