Question

Pets Unlimited sells pet supplies to retailers. The company uses a perpetual inventory. Journalize the following transactions for the company:

June	1	Sold merchandise for $6,250 with terms 2/10, n/30. Inventory cost was $5,000.
	5	Sold merchandise for $10,000 with terms 3/10, n/30. Inventory cost was $6,000.
	11	Received a check from the customer paying the balance due within the discount period.

Date	Account Title	Debit	Credit

Answer 1

Solution:

Pets Unlimited
Journal Entries
Date	Account titles and explanations	Debit	Credit
01-Jun	Accounts receivable Dr	$6,250
	To Sales Revenue		$6,250
	(To record sales)
	Cost of Goods sold Dr	$5,000
	To Merchandise inventory		$5,000
	(To record cost of goods sold)
05-Jun	Accounts receivable Dr	$10,000
	To Sales Revenue		$10,000
	(To record sales)
	Cost of Goods sold Dr	$6,000
	To Merchandise inventory		$6,000
	(To record cost of goods sold)
11-Jun	Cash Dr	$15,825
	Sales Discount Dr ($6250*2%)+($10000*3%)	$425
	To Accounts Receivable ($6250+$10000)		$16,250
	(To record Balance received)