Question

Accounting for Sales of Merchandise in a Perpetual Inventory System Journalize each of the following transactions on the books of the Seller Company: Seller sells $1,000 of merchandise to the Buyer on July 11. The terms of the sale are 2/10, n/30. The merchandise cost the seller $700. Date Account Titles Credit Debit On July 12, the Buyer returns $200 of the merchandise for credit. On July 16, the Seller receives the full amount owed by Buyer who takes advantage of the available cash discount. Instead of transaction # 4 above, assume that the Seller does not receive payment until July 23, after the discount period has expired.

Answer 1

Date	Account Title	Debit	Credit
11-Jul	Accounts Receivable	$     1,000.00
	Sales Revenue		$       1,000.00
	(To record sale of goods)
	Cost pf goods sold	$         700.00
	Inventory		$          700.00
12-Jul	Sales Return	$         200.00
	Accounts Receivable		$          200.00
	(To record sales return)
	Inventory	$         140.00
	Cost of goods sold		$          140.00
	(700/1000*200)
16-Jul	Cash	$         784.00
	Sales Discount	$           16.00
	Accounts Receivable		$          800.00
23-Jul	Cash	$         800.00
	Accounts Receivable		$          800.00