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.

Answer is not complete. General Journal No Date Debit Credit 1 Aug 02 450 Cash Sales Revenue 370 2 Aug 02 80 Cost of Goods Sold Inventory 80 3 Aug 03 500 Accounts Receivable Sales Revenue 500 4 Aug 03 400 Cost of Goods Sold Inventory 400 5 Aug 06 100 Sales Revenue Accounts Receivable > 100 6 Aug 06 80 Inventory Cost of Goods Sold 00 80 7 Aug 10 Deferred Revenue 123 Service Revenue 123 8 Aug 20 300 Cash Sales Revenue 300 9 Aug 20 96 Cost of Goods Sold Inventory 96 10 Aug 22 Cash 440 >> Accounts Receivable 440

Aug.	2		Sold a bundle of spa services with a merchandise basket. When sold separately, the spa service part of the bundle sells for $400 and the merchandise basket normally sells for $100. Together, the bundle was sold to Val Amy for cash at a selling price of $450 (total). Val booked a spa treatment for August 10, and she took the basket of goods with her. The goods had cost NGS $80.
Aug.	3		Sold 5 identical items of merchandise to Cosmetics R Us on account at a selling price of $500 (total); terms n/30. The goods cost NGS $400.
Aug.	6		Cosmetics R Us returned one of the five 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		Val Amy used one of the three spa treatments she had purchased as part of the bundle sold to her on August 2.
Aug.	20		Sold two at-home spa kits to Meghan Witzel for $300 cash. The goods cost NGS $96.
Aug.	22		Cosmetics R Us paid its remaining account balance in full.

Answer 1

1	Aug-02	Cash	450.00
		Sales Revenue		90.00
		Deferred Revenue		360.00
2	Aug-02	Cost of Goods Sold	80.00
		Inventory		80.00
3	Aug-03	Accounts Receivable	500.00
		Sales Revenue		500.00
4	Aug-03	Cost of Goods Sold	400.00
		Inventory		400.00
5	Aug-06	Sales Revenue	100.00
		Accounts Receivable		100.00
6	Aug-06	Inventory	80.00
		Cost of Goods Sold		80.00
7	Aug-10	Deferred Revenue	120.00
		Service Revenue		120.00
8	Aug-20	Cash	300.00
		Sales Revenue		300.00
9	Aug-20	Cost of Goods Sold	96.00
		Inventory		96.00
10	Aug-22	Cash	400.00
		Accounts Receivable		400.00