Question

EXERCISE 3 -PERPETUAL INVENTORY SYSTEM JOURNAL EN Journalize the following transaction for the month of January Copa Company uses a perpetual inventory system and the cost of Goods Sold is 50% of sales. During January, the following transactions and events occurred Jan. 4 Purchased merchandise from Morales Co, for $10,000, terms 2/10, 1/30. Jan. 10 Sold merchandise to Smith Co. $5,000, terms 2/15, 30. Jan. 12 Granted credit to Smith Co, for $1,000 for merchandise returned from the sale of Jan. 10 Jan 13 Paid Morales Co. in full. Jan. 22 Received payment in full from Smith Co. Copa Company General burnal Date Account Titles & Explanation Rel Credit

Answer 1

A В. Date Particulars 4-Jan Merchandise inventory Account payable 2 Debit($) Credit($) 100001 10000 5000 5000 10-Jan Account receivable Sales revenue Cost of goods sold (5000*50%) Merchandise inventory 2500 2500 1000 1000 12-Jan Sales return and allowance Account receivable Merchandise inventory Cost of goods sold 500 500 15 10000 13-Jan Account payable Cash (10000*98%) Merchandise inventory 9800 200 3920 22-Jan Cash (4000*98%) Sales discount Account receivable 80 4000