Question

Prepare journal entries to record each of the following sales transactions of a merchandising company. The company uses a perpetual inventory system and the gross method.

Apr.		1		Sold merchandise for $6,800, with credit terms n/30; invoice dated April 1. The cost of the merchandise is $4,080.
Apr.		4		The customer in the April 1 sale returned $760 of merchandise for full credit. The merchandise, which had cost $456, is returned to inventory.
Apr.		8		Sold merchandise for $2,900, with credit terms of 1/10, n/30; invoice dated April 8. Cost of the merchandise is $2,030.
Apr.		11		Received payment for the amount due from the April 1 sale less the return on April 4.

Answer 1

--Requirements:

>Journal entries

Date	Accounts title	Debit	Credit
Apr-01	Accounts receivables	$6,800
	Sales revenue		$6,800
	(to record sale)
	Cost of Goods Sold	$4,080
	Inventory		$4,080
	(to record cost of sales)
Apr-04	Sales Return & Allowances	$760
	Accounts receivables		$760
	(to record return)
	Inventory	$456
	Cost of Goods Sold		$456
	(to record cost of return goods)
Apr-08	Accounts receivables	$2,900
	Sales revenue		$2,900
	(to record sale)
	Cost of Goods Sold	$2,030
	Inventory		$2,030
	(to record cost of sales)
Apr-11	Cash	$6,040
	Accounts receivables [($6800 - 760)]		$6,040
	(to record cash collection)