Question

WHICH IS CORRECT IF EITHER????? help asap! :(

15. Record the following transactions for Sparky's Pet Shop using the general jouma for Sparky's Pet Shop using the general journal form provided below. Assume Sparky s uses a perpetual inventory system. Omit transaction descriptions from entries: Date August 1 Transaction Purchased Purchased $6,000 of merchandise on account, terms 2/10, n/30. Returned $1,500 of merchandise purchased on August 1 due to defects. Recorded cash sales for the first week of August, $9,750; cost of the merchandise was $4.000. Made sale on account to a local breeder for $500, terms 1/10 net 30; cost of the merchandise was $200. Paid for the merchandise purchased on August 1, less return. Received payment from sale of August 10. The customer took the discount.

Answer 1

he second set of Entries are correct because,

in first set of Journal entries, payment to account payable not recorded properly and no discount benefit account for while recording and last entry for collection against account receivable is not correctly properly recorded.

However, in second set of entries , it's clearly recording made for discount on purchase. and amount received for account receivable