Question

4. Abbey Co. sold merchandise to Gomez Co, on account. $33,000, terms 2/15, net 45. The cost of the merchandise sold was $24,500. Abbey Co, issued a credit memo for $2,800 for merchandise returned that originally cost $1,500. Journalize the above transactions for Abbey Co.

Answer 1

Cost of Goods Sold Debit 24500

Bank Account Credit 24500

Customer account Debit 33000

Sales account Credit 33000

Sales Return account Debit 2800

Customer account Credit 2800

Inventory account Debit 1500

Cost of Goods Sold Credit 1500

Profit and Loss account Debit 23000

Cost of Goods Sold Credit 23000