Question

Suppose Cold As Ice Air Conditioner Company engaged in the following transactions during June of the current year Click the icon to view the transactions.) Requirement Journalize the transactions. Assume Cold As Ice uses a perpetual inventory system. The company estimates sales returns at the end of each month

requirement 2. Set up T accounts and post the journal entries to show the ending balances in the inventory and cost of goods sold accounts only

Answer 1

	We need to account couple of Journal Entries relates to
	Acquisition , Inventory purchase , Cost of goods sold etc
	Details	Debit ($)	Credit($)
3rd June	Inventory	2,000
	Account Payable		2,000
	(Purchase Inventory on account with credit term of 4/10 n/EOM,
9TH June	Return 50% Inventory Purchase on 3rd June
	Account Payable	1000
	Inventory		1,000
	( Return 50% on $ 2000)
12TH June	Account Receivable	1000
	Sales		1,000
	( sold goods for Cash $ 1000, cost $ 600)
12TH June	Cost of Goods Sold	600
	Inventory		600
15TH June	Purchase of goods $ 3000 on account , credit term 4/15, n/30
	Inventory	3000
	Account Payable		3,000
16TH June	Paid $ 280 freight bill on Goods Purchased
	Inventory-Freight	280
	cash		280
17TH June	Cash	3000
	Sales revenue		3,000
	Cost of Goods Sold	2680
	Inventory		2,680
18TH June	Account Receivable	1800
	Sales		1,800
	( sold goods for Cash $ 1800, cost $ 1080)
	Cost of Goods Sold	1080
	Inventory		1,080
22nd June	Sales Return	900
	cash		900
	( received returned goods from the customer
	Inventory	540
	Cost of Goods Sold		540
24th June	Account Payable	3000
	Cash (96%* $ 3000)		2,880
	Inventory( 4% * $ 3000)		120
28th June	Cash ( 96%*$ 1800)	1728
	Sales discount (4%*$ 1800)	72
	Account Receivable		1,800
	( cash colection relates to Transaction datedJune 18th)
29th June	Account Payable	1,000
	Cash		1,000
	Payment of Accounts Payable ( after adjustment of Return) Transaction dated -03rd June
30th June	Sales Return	340
	Account receivable		340
	Inventory	320
	Sales Return		320
	( the company estimated $ 340 - sold return with cost $ 320\

Inventory
		Debit($)			Credit($)
Account Payable		2000	Account Payable		1000
Account Payable		3000	Cost of Goods Sold		600
cash - Freight		280	Cost of Goods Sold		2680
Cost of Goods Sold		540	Cost of Goods Sold		1080
Sales Return		320	Accounts Payable		120
			Closing balanc		660
Total		6140	Total		6140
Cost of Goods Sold
		Debit($)			Credit($)
Inventory		600	Inventory		540
Inventory		2680	Closing balanc		3820
Inventory		1080
Total		4360	Total		4360