Question

Fill Out All White Blanks Below The following transactions occurred between Kinzer Furnishings and K and Furniture Warehouse during July of the current year (Click the icon to view the transactions.) Read the requirements Requirement 2. Journalize these transactions on the books of K and B Furniture Warehouse, assuming the "net" method is used. (Record debits first, then credits. Exclude explanations from any journal entries.) Jul 4: Kinzer Furnishings purchased 57 300 of merchandise from K and B Furniture Warehouse on account. Terms 3/15 /30. FOB shipping point. The goods cost and Furniture Warehouse $2.700 Begin by journalizing the revenue from the sale of merchandise. (Do not yet record the cost related to the sale. We will do this in the next journal entry) Journal Entry Accounts Date Debit Credit 0 More Info Jul Now journalize the cost of goods sold related to the sale of merchandise on July 4. Jul 4 Kinzer Furnishings purchased $7,300 of merchandise from K and Furniture Warehouse on account Terms, 3/15, n/30, FOB shipping point. The goods cost and Furniture Warehouse $2.700 7 Kinzer Furnishings paid a $125 freight bill for delivery of the goods purchased on July 4 10 Kinzer Furnishings returned $1,100 of the merchandise purchased on July 4 The goods cost and B Furniture Warehouse $650 18 Kinzer Furnishings paid $1,800 of the July 4 invoice less the discount 31 Kinzer Furnishings paid the remaining amount owed on the July 4 invoice Journal Entry Accounts Date Debit Credit Print Done Jul 10: Kinzer Furnishings returned 51,100 of the merchandise purchased on July 4. The goods cost K and B Furniture Warehouse 5650 Start by recording the receivable portion of the merchandise return. (Do not yet record the inventory adjustment related to the retum. We will do this in the next journal entry) Journal Entry Date Accounts Debit Credit 10

Answer 1

Date	Accounts	Debit	Credit
July 4	Accounts Receivable	$7,081
	Sales		$7,081
	($7,300 x 0.97)
July 4	Cost of Goods Sold	$2,700
	Merchandise Inventory		$2,700
July 10	Sales Return	$1,067
	Accounts Receivable		$1,067
	($1,100 x 0.97)
July 10	Merchandise Inventory	$650
	Cost of Goods Sold		$650