Question

n/30. On January 16, Harley pays the amount due. Instructions Prepare the entries on Jacob Co.'s books to record the sale and related collection. (Omit cost of goods sold entries.) E9.2 (LO 1) Presented below are selected transactions of Molina Company. Molina sells in large quanti- ties to other companies and also sells its product in a small retail outlet. March 1 Sold merchandise on account to Dodson Company for $5,000, terms 2/10, n/30. 3 Dodson Company returned merchandise worth $500 to Molina. 9 Molina collected the amount due from Dodson Company from the March 1 sale. 15 Molina sold merchandise for $400 in its retail outlet. The customer used his Molina credit card. 31 Molina added 1.5% monthly interest to the customer's credit card balance, Instructions Prepare journal entries for the transactions above. (Ignore cost of goods sold entries and explanations.)

Answer 1

Molina Company Diaz Company Requirement a Journal Enteries Date Particulars Mar-01 Accounts Receivable a/c To Sales Revenue (Sales on account) Debit in $ Credit in $ 5000 Dr. 5000 Debit in $ Credit in $ Journal Enteries Date Particulars Jun-10 Inventory a/c Dr. To Accounts Payable (Inventory on account) 8000 8000 500 Mar-03 Sales Retun a/c Dr. To Accounts Receivable (goods returned by customer) 500 Jun-11 Dr. Inventory a/c To Cash (Freight paid) 400 Mar-09 Cash a/c Dr. 4900 Sales Discount a/c Dr. 100 To Accounts Receivable (Cash from debtors in discount period) 5000 x 2% = 100 5000 Dr. 300 Jun-12 Accounts Payable a/c To Inventory (Inventory returned) 300 Dr. 400 7700 Mar-15 Accounts Receivable a/c To Sales Revenue (Sales on account) 400 Jun-19 Accounts Payable a/c Dr. To Inventory To Cash (Creditors paid) 8000 - 300 = 7700 x 2% = 154 154 7546 Dr. Requirement b Mar-31 Accounts Receivable a/c To Interest Revenue (Interest revenue accrued) 400 x 1.5% x 0.5 Journal Enteries Date Particulars Jun-10 Accounts Receivable a/c Dr. To Sales Revenue (Sales on account) Debit in $ Credit in $ 8000 8000 4800 Cost of goods sold a/c Dr. To Inventory (To record cost of goods sold) 4800 300 Jun-12 Sales Returns and Allowances a/c Dr. To Accounts Receivable (Goods Returned) 300 70 Inventory a/c Dr. To Cost of goods sold (Goods Returned) 70 Dr. Dr. 7546 154 Jun-19 Cash a/c Sales Discount a/c To Accounts Receivable (Cash from debtors in discount period) 7700