Question

Prepare journal entries to record each of the merchandising transactions assuming that the company records purchases using the gross method and a periodic inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Apr. 1 Sold merchandise for $4,800, with credit terms n/30; invoice dated April 1. The cost of the merchandise is $2,880. Apr. 4 The customer in the April 1 sale returned $560 of merchandise for full credit. The merchandise, which had cost $336, is returned to inventory. Apr. 8 Sold merchandise for $1,900, with credit terms of 1/10, n/30; invoice dated April 8. Cost of the merchandise is $1,330. Apr. 11 Received payment for the amount due from the April 1 sale less the return on April 4. View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 Apr 01 Accounts receivable 4,800 Sales 4,800 2 Anr 01 Cost of goods sold 2880

Please help, this is wrong

Answer 1

Solution:

Journal Entries
Date	Particulars	Debit	Credit
1-Apr	Accounts receivables Dr	$4,800.00
	To Sales revenue		$4,800.00
	(To record sales revenue)
4-Apr	Sales returns and allowances Dr	$560.00
	To Accounts receivables		$560.00
	(To record sales returns and allowances)
8-Apr	Accounts receivables Dr	$1,900.00
	To Sales revenue		$1,900.00
	(To record sales revenue)
11-Apr	Cash Dr	$4,240.00
	To Accounts receivables		$4,240.00
	(To record collection from customers)