Question

Question 5 Not complete Marked out of 8.00 P Flag question Accounting for Sales Transactions Kate Company uses the perpetual inventory system. Record the journal entries for the following transactions: a. On July 16, Kate sold $900 of merchandise with terms of 2/10, n/30. The cost of the merchandise was $540. b. On July 19, the customer returned $150 of the merchandise from (a). The cost of the merchandise was $90. c. On July 22, the customer paid the entire balance due to Kate. General Journal Description Ref. Debit Credit 0 0 To record sale of merchandise. To record cost of merchandise sold. To record return of merchandise sold. To record cost of merchandise sold. Cash

Answer 1

a	Accounts Receivable	900
	Sales revenue		900
	Cost of goods sold	540
	Inventory		540
b	Sales returns	150
	Accounts Receivable		150
	Inventory	90
	Cost of goods sold		90
c	Cash	735
	Sales Discounts	15		=750*2%
	Accounts Receivable		750