How would I prepard a journal entries to the following selected in July? Also th

Question

How would I prepard a journal entries to the following selected in July? Also this company use the perpetual inventory system.

june 30 roman Co. has $125,900 of accounts recivables.

july 4 sold $6,295 of merchandise (that had cost $4000) to the customers on credit
july9 sold $18,000 of accounts receibable to Center Bank Center charges a 4% factoring fee
July 17 received $3,436 cash from customers in payment on their accounts
July 27 borrowed $10,000 cash from Center Bank, pledging $13,000 of accounts rrceivable as security for the loan.

Explanation / Answer

Journal Entries Using Perpetual Inventory System Date Details Debit Credit July Accounts Receivable 6,295       Sales Revenue 6,295 (Torecord sale of merchandise) Cost of Goods sold 4,000       Inventory 4,000 (To record cost of goods sold) 9-Jul Cash 17,280 Factoring fee 720         Accounts Receivable 18,000 (To record factoring fee) 17-Jul Cash 3,436        Accounts Receivable 3,436 (To record cash receipts from customers) Jule 27 Cash 10,000     Accounts Receivable 10,000 (To record cash borrowed from bank on pleding accounts receivables)

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