JOURNALIZE THE SELLER\'S JOURNAL ENTRIES (20 points) Hint: three journal entries

Question

JOURNALIZE THE SELLER'S JOURNAL ENTRIES (20 points) Hint: three journal entries are needed. 1. January 1, 2018, ABC company sold merchandise on account, S12,500 with terms 2/10, n/30. The cost of the merchandise sold was S9,000. On January 7, 2018, ABC company received payment full payment less the discount. Date Account Name Debit Credito 2. Star-Rising Inc.'s accounting book indicated the inventory on December 31, 2018 is $78,890 However, the physical inventory performed on the last day of the year showed $72,150. What journal entry will you do for the inventory shrinkage? Please write the journal entry below.* Datep Account Namep Debite Credite

Explanation / Answer

Solution 1:

Solution 2:

Journal Entries - ABC Company Date Particulars Debit Credit 1-Jan Accounts Receivables Dr $12,500.00       To Sales Revenue $12,500.00 (Being inventory sold on credit) 1-Jan Cost of Goods sold Dr $9,000.00       To Inventory $9,000.00 (Being cost of Merchandise transferred from inventory to COGS) 7-Jan Cash Dr $12,250.00 Sales Discount Dr $250.00       To Accounts receivables $12,500.00 (Being cash received from debtors with in discount period)

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