Question

Canada Ac- ng Weekly Up- The following merchandise transactions occurred in December. Both companies use a perpetual Inventory system ook PLUS Support Dec. 3 Whispering Winds Ltd. sold goods to Ayayal Corp. for $61,500,terms 2/10, 1/30, FOB shipping point. The inventory had cost Whispering Winds $37,600. 7 Shipping costs of $920 were paid by the appropriate company 8 Ayayal returned unwanted merchandise to Whispering Winds. The returned merchandise has a sales price of $2.000, and a cost of $1.080. It was restored to inventory 11 Whispering Winds received the balance due from Ayayai. Part 1 Record the above transactions in the books of Whispering Winds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Round answers to the nearest whole dollar, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Dec. 3 (To record credit sale) (To record cost of merchandise sold)

Answer 1

1)

Date	Particulars	Debit	Credit
03-Dec	Account Receivable	61,500
	Sales Revenue		61,500
03-Dec	Costs of Goods Sold	37,600
	Inventory		37,600
04-Dec	Freight out	920
	Cash		920
08-Dec	Sales Returns	2,000
	Account Receivable		2,000
	Inventory	1,080
	Costs of Goods Sold		1,080
10-Dec	Cash (61500 - 2000) * 2%	58,310
	Sales discount (61500 - 2000) * 2%	1,190
	Account Receivable		59,500

　

2)

Date	Particulars	Debit	Credit
Dec-03	Inventory	61,500
	Accounts Payable		61,500
Dec-08	Accounts Payable	2,000
	Inventory		2,000
Dec-13	Accounts Payable	59,500
	Purchase discount		1,190
	Cash		58,310

　

3)

Sales		61,500
Less:
Sales Return	2000
Sales Discount	1,190	-3,190
Net sales		58,310
Less: COGS (37,600 - 1,080)		-36520
Gross profit		21,790