Question

The following transactions were selected from among those completed by Hailey Retailers in the current year. Nov. 20 Sold two items of merchandise to Customer B, who charged the $450 (total) sales price on her Visa credit card. Visa charges Hailey a 2 percent credit card fee. 25 Sold 14 items of merchandise to Customer Cat an invoice price of $3,700 (total); terms 1/10, 1/30. 28 Sold 12 identical items of merchandise to Customer D at an involce price of $7,560 (total): terms 1/10,n30. 30 Customer D returned one of the items purchased on the 28th; the item was defective and credit was given to the customer. Dec. 06 Customer D paid the account balance in full. 30 Customer C paid in full for the invoice of November 25. Required: 1. Prepare the appropriate journal entry for each of these transactions. Do not record cost of goods sold. 2. Compute Net Sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate journal entry for each of these transactions. Do not record cost of goods sold. (If no entry is required for transaction/event, select "No journal entry required in the first account feld, Round your answers to nearest whole dollar < Prey 4 of 12 3 Next >

Answer 1

Requirement 1:

Date	Account title and Explanation	Debit	Credit
Nov.20	Cash	$441
	Card fee expense [450 x 2%]	$9
	Sales revenue		$450
	[To record credit card sales]
Nov 25	Accounts receivable	$3,700
	Sales revenue		$3,700
	[To record sales on account to -Customer C]
Nov 28	Accounts receivable	$7,560
	Sales revenue		$7,560
	[To record sales on account to -Customer D]
Nov 30	Sales returns and Allowance [7,560 x 1/12]	$630
	Accounts receivable		$630
	[To record sales returns from - Customer D]
Dec 06	Accounts receivable [7,560 - 630]	$6,930
	Sales discount [6,930 x 1%]		$69
	Cash		$6,861
	[To record collections from customer D]
Dec 30	Accounts receivable	$3,700
	Cash		3700
	[To record collections from customer C]

Requirement 2:

Total sales [450+3700+7560]	$11,710
Less: Sales returns and allowance	($630)
Sales discounts	($69)
Net sales	$11,011