Question

Journalize the following transactions for Bridgeport Audio. Bridgeport Audio , Inc., that occurred during the month of November.assuming the "net" method is used. Bridgeport Audio Bridgeport Audio 's cost of inventory is 55% percent of the sales price.

NovNov	3		Sold 2,400 of merchandise on account, terms 44 /15, n/45, FOB shipping point.Bridgeport Audio Bridgeport Audio , Inc., prepaid $ 90 of shipping costs and added the amount to the customer's invoice.
	7		Issued a credit memo to the customer acknowledging the return of $ 400 (sales price) of unwanted goods.
	16		Received payment in full from the customer for the November 3 invoice.

Answer 1

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Date	Account	Debit	Credit	Remarks
Nov 3	Accounts Receivable	$    2,394		2304 Sale+90 Prepaid Freight
	Sales Revenue		$    2,304	2400-(2400*4%)
	Cash		$         90	Prepaid Freight
	(Being amount of sales and prepaid freight recorded)
Nov 3	Cost of Goods Sold	$    1,320		2400*55%
	Inventory		$    1,320
Nov 7	Sales Return and Allowance	$       384		400-(400*4%)
	Accounts Receivable		$       384
Nov 7	Inventory	$       220		400*55%
	Cost of Goods Sold		$       220
Nov 16	Cash	$    2,010		2394-384
	Accounts Receivable		$    2,010