Question

Exercise 8-2 Selected transactions follow for Clinton Sports Ltd. during the company's first month of business. The company uses a perpetual inventory system. Feb. 2 4 5 8 10 14 17 22 28 Sold $1,151 of merchandise to Andrew Noren on account, terms n/30. The goods had cost Clinton $758. Andrew Noren returned for credit $139 of the merchandise purchased on February 2. The goods had cost Clinton $85 and they were returned to inventory. Sold $768 of merchandise to Dong Corporation on account, terms 2/10, n/30. The goods had cost Clinton $495. Sold $840 of merchandise to Michael Collins for cash. The goods had cost Clinton $621. Sold $915 of merchandise to Rafik Kurji, who paid with a credit card. The goods had cost Clinton $683. Dong Corporation paid its account in full. Andrew Noren purchased an additional $701 of merchandise on account, terms n/30. The goods had cost Clinton $411. Sold $1,728 of merchandise to Batstone Corporation on account, terms 2/10, n/30. The goods had cost Clinton $1,100. Andrew Noren paid $1,012 on account.
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Answer 1

Date

Ledger Description

Debit

Credit

Date

Ledger Description

Debit

Credit

Date

Ledger Description

Debit

Credit

Feb.2

Accounts Recivable

$   1,151

Feb.8

Cash

$       840

Feb.17

Accounts Recivable

$       701

To Sales

$   1,151

To Sales

$       840

To Sales

$       701

(To Record Sales)

(To Record Sales)

(To Record Sales)

Feb.2

Cost of goods Sold

$       758

Feb.8

Cost of goods Sold

$       621

Feb.17

Cost of goods Sold

$       411

To Inventory

$       758

To Inventory

$       621

To Inventory

$       411

(To Record Cost of Goods sold)

(To Record Cost of Goods sold)

(To Record Cost of Goods sold)

Date

Ledger Description

Debit

Credit

Date

Ledger Description

Debit

Credit

Date

Ledger Description

Debit

Credit

Feb.4

Sales Return

$       139

Feb.10

Cash

$       915

Feb.22

Accounts Recivable

$   1,728

To Accounts Recivable

$       139

To Sales

$       915

To Sales

$   1,728

(To Record Sales Return)

(To Record Cash Sales)

(To Record Sales)

Feb.4

Cost of goods Sold

$         85

Feb.10

Cost of goods Sold

$       683

Feb.22

Cost of goods Sold

$   1,100

To Inventory

$         85

To Inventory

$       683

To Inventory

$   1,100

(To Record Cost of Goods sold for return)

(To Record Cost of Goods sold)

(To Record Cost of Goods sold)

Date

Ledger Description

Debit

Credit

Date

Ledger Description

Debit

Credit

Date

Ledger Description

Debit

Credit

Feb.5

Accounts Recivable

$       768

Feb.14

Cash

$ 752.64

Feb.28

Cash

$   1,012

To Sales

$       768

Sales Discount

$   15.36

To Accounts Recivable

$   1,012

(To Record Sales)

To Accounts Recivable

$ 768.00

(To Record cash recived $1151-$139)

(To Cash recived with 2% discountSales)

Feb.5

Cost of goods Sold

$       495

To Inventory

$       495