Question

o Suppose Bargain Hardware sells merchandise on account, terms 2/10,n/60, for $1,200 (the cost of the inventory is $320) on January 17, 2018. Bargain Hardware later received 400 of goods (cost, $100) as sales returns on January 21, 2018. The customer paid the balance due on January 26, 2018. Journalize the January 2018 transactions for Bargain Hardware assuming the "net" method is used (Record debits first, then credits Exclude explanations from any journal entries. Round your answers to the nearest cent, X.XX.) Start by journalizing the revenue portion of the sale for Bargain Hardware on January 17. (Do not yet record the cost related to the sale. We will do this in the next journal entry.) Journal Entry Accounts Date Debit Credit Jan 17 Next, journalize the cost of goods sold. Journal Entry Date Accounts Debit Credit Jan 17 Journalize the revenue effect of the sale return. (Do not yet record the inventory adjustment related to the return. We will do this in the next journal entry) Journal Entry Date Accounts Debit Credit Jan 21 Choose from any list or enter any number in the input fields and then continue to the next question.

Answer 1

	Journal Entry
Date	Accounts	Debit	Credit
Jan. 17	Account Receivable [1200*98%]	$    1,176
	Sales Revenue		$    1,176
	(To record sales made on account)
Jan. 17	Cost Of Goods Sold	$        320
	Inventory		$        320
	( To record Cost of goods sold)
Jan. 21	Sales return and allowance [400*98%]	$        392
	Account Receivable		$        392
	(To record sales returns)
Jan. 21	Inventory	$        100
	Cost Of Goods Sold		$        100
	( To record Cost of goods sold)
Jan. 26	Cash [1176-392]	$        784
	Account Receivable		$        784
	(To record account receivable received)