Question

Exercise 5-05 a-b (Video) Presented below are transactions related to Carla Vista Company, . 1. On December 3, Carla Vista Company sold $618,600 of merchandise on account to Martinez Co., terms 2/10,n/30, FOB destination. Carla Vista paid $410 for freight charges. The cost of the merchandise sold was $367,900. 2. On December 8, Martinez Co. was granted an allowance of $28,200 for merchandise purchased on December 3. 3. On December 13, Carla Vista Company received the balance due from Martinez Co. Your answer is partially correct. Try again. Prepare the journal entries to record these transactions on the books of Carla Vista Company using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. Dec. 3 Accounts Receivable 618600 Sales Revenue 618600 (To record credit sale) Dec. 3 v Cost of Goods Sold 3679001 Inventory 367900 (To record cost of merchandise sold) Dec. 8 Sales Returns and Allowances 28200 Accounts Receivable 28200 (To record freight charges) X Freight-In 2 Dec. 3 410 410 X 3. Dec. 13 cash Sales Discounts Inventory Your answer is partially correct. Try again. Assume that Carla vista company received the balance due from Martinez Co. on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 2 Cash Sales Discounts Click if you would like to show Work for this question: Open Show Work

Answer 1

Credit No. Date 1 Dec.3 Debit $ 618,600 Account titles and Explanation Account Receivable Sales revenue (To record credit sale) $ 618,600 Dec.3 Cost of goods sold Inventory (To record the cost of merchandise sold) $ 367,900 $367,900 Dec.3 $ 410 Freight-out Cash (To record freight charges) $ 410 2 Dec. 8 $ 28,200 Sales returns and allowances Account receivable $ 28,200 3 Dec.13 Cash ($590,400 - $11,808) Sales discounts ($590,400*2%) Accounts receivable ($618,600-$28,200) $ 578,592 $ 11,808 $ 590,400 Credit Date Jan.2 Account titles and Explanation Cash ($618,600-$28,200) Accounts receivable ($618,600-$28,200) Debit $ 590,400 $ 590,400