Question

No Debit Depil Credit Date May 03 General Journal No Transaction Recorded May 05 No Transaction Recorded May 07 No Transaction Recorded 4 May 08 No Transaction Recorded

Answer 1

WORKING NOTES:
	CALCULATION OF NET AMOUNT RECEIVALBE FROM MACY CO.
	Sales Value =	$                  19,500
	Less: Sales Returns & allowanes	$                     1,950
	Less: Sales Returns & allowanes	$                        750
	Net Receivable	$                  16,800
	Less: Cash discount 2% of $ 16,880 for payment made within 10 Days(Crdit terms 2/10 , n/60)	$                        336
	Received cash from Maacy Co.	$                  16,464
SOLUTION :
Journal Entries
Date	Account Title and explanation	Debit	Credit
May, 03	" No Journal entry required"
May, 05	Inventory	$                  19,500
	Account Payable		$                     19,500
May, 05	" No Journal entry required for Cost of Goods sold"
May, 07	Account Payable	$                     1,950
	Purchase Returns & Allowances		$                       1,950
May, 07	" No Journal entry required for Cost of Goods sold"
May, 08	Account Payable	$                        750
	Purchase Returns & Allowances		$                           750
May, 15	Account Payable	$                  16,800
	Purhcase Discount		$                           336
	Cash		$                     16,464