Question

Jul. 1 Peter sold $24,000 of men's sportswear for cash. Cost of goods sold is $13,000 3 Peter sold $61,000 of women's sportswear on account 5 Peter received a $3,000 sales return on damaged goods from the customer on July 1. Cost of goods 10 Peter receives payment from the customer on the amount due, less discount. , credit terms are 3/10, n/45. Cost of goods is $29,000. damaged is $1,500.

Answer 1

Date	Particulars	Debit	Credit
Jul-01	Cash	24000
	sales		24000
Jul-01	Cost of goods sold	13000
	Merchandise Inventory		13000
Jul-03
	Accounts Receivable	61000
	sales		61000
Jul-03	Cost of goods sold	29000
	Merchandise Inventory		29000
Jul-05	sales Returns and Allowances	3000
	cash		3000
	Generally No accounting Entry is Required in the given case as Damaged goods
	have no value ,,Suppose if the damaged goods have a value of same 1500 then
Jul-05	Merchandise Inventory	1500
	Cost of goods sold		1500
	Note: In the given Problem we don’t need an accounting entry
	It is for your Knowledge Purpose only, because has no value
	Here the problem provides cost but not any value after damaged
	If it have value of 1500 after damage then above entry need to journalised
	otherwise no accounting entry is required
Jul-10	Cash	59170
	Sales Discount	1830
	Accounts Receivables		61000