Question

PE 6-3A Sales transactions OBJ. 2 Journalize the following merchandise transactions: a. Sold merchandise on account, $72,500 with terms 2/10, n/30. The cost of the merchandise sold was $43,500. b. Received payment less the discount. c. Issued a credit memo for returned merchandise that was sold for $2,300 terms n/30. The cost of the merchandise returned was $1,600.

Answer 1

	Account Titles	Debit	Credit
a	Accounts Receivable	$           72,500
	Sales Revenue		$             72,500
	(Goods Sold on account)
	Cost of Goods Sold	$           43,500
	Inventory		$             43,500
	(Cost of goods sold taken out of inventory)
b	Cash	$           71,050		=72500*0.98
	Sales Discount	$             1,450		=72500*0.02
	Accounts Receivable		$             72,500
	(Cash Received net of discount)
c	Sales Return and allowance	$             2,300
	Accounts Receivable		$               2,300
	(Sales return)
	Inventory	$             1,600
	Cost of Goods sold		$               1,600
	(Inventory received back)