How do I journalize these entries using perpetual accounting system? Dec 5 Sold

Question

How do I journalize these entries using perpetual accounting system?

Dec 5   Sold merchandise on account for Dexter Ltd for $3000, terms 2/10. The cost of the merchandise sold was $1500

Dec 6   Paid $300 freight on Dec 5 sale

Dec 12  Gave refund of $1000 to dexter Ltd for Dec 5 purchase. Cost of returned merchandise was $500

Dec 17 Received payment in full from Dexter Ltd.

Dec 23 Purchased merchandise from Harry Co. for $5000, terms 2/15, n/30

Dec 26 Paid $400 freight on Dec 23 purchase

Dec 29 Borrowed $10,000 from the bank on a note payable (short term)

Dec 31 Paid Harry Co. in full.

Explanation / Answer

Debit Credit 5-Dec Dexter Ltd 3000 To sales 3000 6-Dec freight 300 To cash 300 12-Dec Sales return 1000 To dexter 1000 17-Dec Cash 2000 To dexter 2000 23-Dec Purchases 5000 To Harry co. 5000 26-Dec freight 400 To cash 400 Dec 29 Bank a/c 10000 To note payable 10000 31-Dec Harry c. 5000 To cash 4900 To discount recvd 100

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.