SOLUTION:
Debit | Credit | ||
May-03 | Merchandise Inventory | 4,120 | |
Accounts Payable–Floyd Co. | 4,120 | ||
May-05 | Merchandise Inventory | 8,500 | |
Accounts Payable–Kramer Co. | 8,500 | ||
May-06 | Accounts Receivable–C. F. Howell Co. | 2,800 | |
Sales | 2,800 | ||
($4,000 - (30% * $4,000) = $2,800 | |||
May-06 | Cost of Merchandise Sold | 1,125 | |
Merchandise Inventory | 1,125 | ||
May-08 | Office Supplies | 150 | |
Cash | 150 | ||
May-10 | Accounts Payable–Kramer Co. | 1,300 | |
Merchandise Inventory | 1,300 | ||
May-13 | Accounts Payable–Floyd Co. | 4,120 | |
Merchandise Inventory | 40 | ||
Cash | 4,040 | ||
(2% x $4,000 = $80; $4,000 - $80+$120 = $4,040 | |||
May-14 | Merchandise Inventory | 10,500 | |
Cash | |||
May-15 | Accounts Payable–Kramer Co. | 7,200 | |
Merchandise Inventory | 72 | ||
Cash | 7,128 | ||
(8,500 -1,300) x 1% = $72; $8,500 - $1,300 - $72 = $7,128 | |||
May-16 | Cash | 2,744 | |
Sales Discounts | 56 | ||
Accounts Receivable–C. F. Howell Co. | 2,800 | ||
$2,800 * 2% = $56; $2,800 - $56 = $2,744 | |||
May-19 | Accounts Receivable–American Express | 2,450 | |
Sales | 2,450 | ||
May-19 | Cost of Merchandise Sold | 980 | |
Merchandise Inventory | 980 | ||
May-22 | Accounts Receivable–Comer Co. | 3,480 | |
Sales | 3,480 | ||
May-22 | Cost of Merchandise Sold | 1,400 | |
Merchandise Inventory | 1,400 | ||
May-24 | Cash | 4,350 | |
Sales | 4,350 | ||
May-25 | Sales Returns and Allowances | 1,480 | |
Accounts Receivable–Comer Co. | 1,480 | ||
May-25 | Merchandise Inventory | 600 | |
Cost of Merchandise Sold | 600 | ||
May-31 | Cash | 2,310 | |
Credit Card Expense | 140 | ||
Accounts Receivable–American Express | 2,450 |
Posting journal entry 160 Chapter 6 Accounting for Merchandising Businesses Illustrative Problem The following transactions were...
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