Question

Nicole's Getaway Spa (NGS) has been so successful that Nicole has decided to expand her spa by selling merchandise. She sells things such as nail polish, at-home spa kits, cosmetics, and aromatherapy items. Nicole uses a perpetual inventory system and is starting to realize all of the work that is created when inventory is involved in a business. The following transactions were selected from among those completed by NGS in August. Aug. 2 Sold 10 items of merchandise to Salon World on account at a selling price of $10,000 (total); terms 2/10, n/30. The goods cost NGS $6,500. Aug. 3 Sold 5 identical items of merchandise to Cosmetics R Us on account at a selling price of $5,900 (total); terms 2/10, n/30. The goods cost NGS $4,425. Aug. 6 Cosmetics R Us returned one of the items purchased on August 3. The item could still be sold by NGS in the future and credit was given to the customer. Aug. 10 Collected payment from Salon World, fully paying off the account balance. Aug. 20 Sold two at-home spa kits to Meghan Witzel for $2,100 cash. The goods cost NGS $672. Aug. 22 Cosmetics R Us paid its remaining account balance in full. Required: 1. Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet Ko @ @ @ 6 0 0 O O , Record the 1 item returned into inventory for its original cost of goods sold. Note: Enter debits before credits. Credit Date Aug 06 General Journal Inventory Cost of Goods Sold Debit 1,764 1,764

Im stuck on August 6th, 8th & 10th as well as the last two questions.

Answer 1

Entry # Credit Date Aug. 2 Debit $10,000 $10,000 2) Aug. 2 $6,500 $6,500 3) 3) Aug. 3 $5,900 $5,900 General Journal Accounts Receivable-Salon World Sale Revenue (To record sales on account 10 items of merchandise) Cost of Goods Sold Merchandise Inventory (To record cost of 10 items of merchandise sold) Accounts Receivable-Cosmetics R Sale Revenue (To record sales on account 5 items of merchandise) Cost of Goods Sold Merchandise Inventory (To record cost of 5 items of merchandise sold) Sales Returns and Allowances Accounts Receivable-Cosmetics R (To record sale return of one item of merchandise) Merchandise Inventory Cost of Goods Sold (To record cost of 1 item of merchandise returned) Aug. 3 $4,425 $4,425 Aug. 6 $1,180 [$5900 x 1/5] $1,180 Aug. 6 $885 ($4425 x 1/5] $885

Aug. 10 $9,800 $200 [Balancing figure -->$10000 - $200 = $9800] ($10000 x 2%; as bill is settled within discount period of 2/10] $10,000 8) Aug. 20 $2,100 $2,100 Cash Sales Discounts Accounts Receivable-Salon World (To record cost of 1 item of merchandise returned) Cash Sale Revenue (To record sale of 2 items of at-home spa for cash) cost of Goods Sold Merchandise Inventory (To record cost of 2 items of at-home spa sold) Cash Accounts Receivable-Cosmetics R (To record collections on account from Cosmetics R) 9) Aug. 20 $672 $672 10) Aug. 22 $4,720 [Sales less Returns --> $5900 - $1180 = $4720] [No discount is offered as bill is settled after discount period of 10 days] $4,720