Question

Sold merchandise on credit for $5,000, terms 3/10, n/30. The items sold had a cost of $3,500. Purchased merchandise for cash, $2,720. Purchased merchandise on credit for $2,600, terms 1/20, n/30. Issued a credit memorandum for $3,000 to a customer who returned merchandise purchased July 20. The returned items had a cost of $2,010. Received payment for merchandise sold August 1. Aug 1 4 10 15 Received a credit memorandum from the seller for the return of defective 18 Paid freight charges of $200 for merchandise ordered last month. (FOB 23 Paid for the merchandise purchased August 4 less the portion that was 4 Sold merchandise on credit for $7,000, terms 2/10, n/30. The items had a 31 Received payment merchandise purchased on August 4 for $600. shipping point) returned. 2 cost of $4,900. for merchandise sold on August 24.

Answer 1

Answer: Date Debit Credit General Journal Aug 1 Aug 1 Aug 3 Aug 4 Aug 5 Aug 5 Aug 10 Accounts Receivable 5,000 3,500 2,720 2,600 3,000 2,010 4,850 Sales Cost of Goods Sold 5,000 3,500 2,720 2,600 3,000 2,010 Merchandise Inventory Merchandise Inventory Cash Merchandise Inventory Accounts Payable Sales Return and Allowance Accounts Receivable Merchandise Inventory Cost of Goods Sold Cash Sales Discounts 150 Accounts Receivable 5,000 Aug 15 Aug 18 Aug 23 Accounts Payable Merchandise Inventory Accounts Payable 600 Merchandise Inventory 600 200 Cash 200 2,000 Merchandise Inventory ($2,000 *0.01) Cash 20 1,980 7,000 4,900 Aug 24 Aug 24 Aug 31 Accounts Receivable 7,000 4,900 6,860 Sales Cost of Goods Sold Merchandise Inventory Cash Sales Discounts ($7,000 *2%) 140 Accounts Receivable 7,000