Question

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1. Record the following transactions for Sparky's Pet Shop using the general journal form provided below. Assume Sparky's uses a perpetual inventory system. Omit transaction descriptions from entries: Date ransaction uly 3 Sold merchandise on account for $3,750. The cost of the merchandise sold was $2,000 July 5 July 12 August 1 August 3 August 7 August 10 August 11 August 20 lissued credit memo for the $1,050 for merchandise returned from sale on July 3. The cost of the merchandise returned was $610. Received check for the amount due for sale of July 3 less return on July 5. Purchased $6,000 of merchandise on account, terms 2/10, n/30. Returned S1,500 of merchandise purchased on August 1 due to defects. Recorded cash sales for the first week of August, $9,750 plus 6% sales taxes; cost of the merchandise was $4,000. Made sale on account to a local breeder for $500, terms 1/10 net 30; cost of the merchandise was $200 Paid for the merchandise purchased on August I, less return. Received payment from sale of August 10.

Answer 1

03-Jul	Accounts receivable	3750
	Sales revenue		3750
	Cost of goods sold	2000
	Inventory		2000
05-Jul	Sales return and allowance	1050
	Accounts receivable		1050
	Inventory	610
	Cost of goods sold		610
12-Jul	Cash	2700
	Accounts receivable		2700
01-Aug	Inventory	6000
	Accounts payable		6000
03-Aug	Accounts payable	1500
	Inventory		1500
07-Aug	Cash	10335
	Sales revenue		9750
	Sales tax payable		585	(9750*6%)
10-Aug	Accounts receivable	500
	Sales revenue		500
	Cost of goods sold	200
	Inventory		200
11-Aug	Accounts payable	4500
	Cash		4410
	Purchase discount		90
20-Aug	Cash	495
	Sales return and allowance	5
	Accounts receivable		500