Question

Journalize the following sales transactions for Peter Sportswear. Explanations are not required. The company estimates sales returns at the end of each month. (Assume the company uses a perpetual inventory system and records sales at the net amount.) (Click the loon to view the transactions.) Journalize the sales transactions. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries.) Apr. 1: Peter sold $25,000 of men's spartswear for cash. Cost of goods sald is $12,000. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step. Date Accounts Debit Credit Apr. 1 More Info Apr. 1 Peter sold $25,000 of men's sportswear for cash. Cost of gcods sold is $12,000. 3 Peter scld S63,000 of women's sportswear on account, credit terms are 3/10, n/30. Cost of goods is 5 10 Peter receives payment from the customer on the amount due, less discount. Now journalize the expense related to the April 1 sale Cost of goods sold, S12,000. $30,000. Peter received a S5,000 sales return on damaged goods from the customer on April 1. Cost of goods damaged is $2,500. Date Accounts Debit Credit Apr. 1 Print Done

Answer 1

Solution:

Peter Sportswear
Date	Account Title	Debit	credit
01-Apr	Cash Dr	$25,000
	To Sales Revenue		$25,000
01-Apr	Cost of goods sold Dr	$12,000
	To Inventory		$12,000
03-Apr	Accounts Receivable Dr ($63000 - $63000*3%)	$61,110
	To Sales Revenue		$61,110
03-Apr	Cost of goods sold Dr	$30,000
	To Inventory		$30,000
05-Apr	Sales Returns and Allowances Dr	$5,000
	To Cash		$5,000
05-Apr	Inventory Dr	$2,500
	To Cost of Goods sold		$2,500
10-Apr	Cash Dr	$61,110
	To Accounts Receivable		$61,110