Question

Bookmarks Window Help a mybusinesscourse.com Menu QUESTION 7 Partiaily correctMark 11.92 out of 20.00 ag question Journal Entries for Merchandise Transactions on Seller's and Buyer's Books- Perpetual System The following are selected transactions for Lamont, Inc, during the month of June: Sold and shipped on account to Lowery Company, $9,880 (59,000 cost) of merchandise, with terms of 2/10,n/30 June 21 28 Lowery Company returned defective merchandise billed at $780 on June 21 ($710 cost) 30 Received from Lowery Company a check for full settlement of the June 21 transaction. Required Prepare the necessary journal entries for (a) Lamont, Inc., and (b) Lowery Company. Both companies use the perpetual inventory system. a. LAMONT, INC. GENERAL JOURNAL Date Description Debit Credit June 21 Accounts Receivable Sales Revenue Sold merchandise to Lowery Company terms 2/10, n/30 21 Cash

Answer 1

lamont inc general entries
Date	Particulars			Debit	Credit
21-Jun	accounts receivable			$ 9,880.00
	sales revenue				$ 9,880.00
	(sold merchandise to lowery co)
21-Jun	Cost of goods sold			$ 9,000.00
	inventory				$ 9,000.00
	(cost of merchandise sold to lowery co)
28-Jun	sale return & allowances			$     780.00
	accounts receivable				$     780.00
	(merchandise returned by lowery co)
28-Jun	inventory			$     710.00
	cost of goods sold				$     710.00
	(cost of merchandise returned by Lowery co)
30-Jun	Cash (9100-182)			$ 8,918.00
	sale discount (9100*2%)			$     182.00
	accounts receivable (9880-780)				$ 9,100.00
	(cash received )
Lowery company general journal
Date	Particulars			Debit	credit
21-Jun	inventory			$ 9,880.00
	accounts payable				$ 9,880.00
	(purchased merchendise from lamont inc)
28-Jun	accounts payable			$     780.00
	inventory				$     780.00
	(retuen merchendise to lamont inc)
30-Jun	Account payable (9880-780)			$ 9,100.00
	inventory (9100*2%)				$     182.00
	cash				$ 8,918.00
	(paid the due amount to lamnont inc)