Debit Credit (a) Journalize the December transactions using a perpetual inventor

Question

Debit

Credit

(a)

Journalize the December transactions using a perpetual inventory system.

On December 1, 2014, Boline Distributing Company had the following account balances.

Debit

Credit

Cash $7,380 Accumulated Depreciation—Equipment $2,519 Accounts Receivable 5,480 Accounts Payable 4,820 Inventory 11,900 Salaries and Wages Payable 1,160 Supplies 1,420 Common Stock 15,250 Equipment 25,190 Retained Earnings 27,621 $51,370 $51,370
During December, the company completed the following summary transactions.
Dec. 6 Paid $1,790 for salaries due employees, of which $630 is for December and $1,160 is for November salaries payable. 8 Received $1,820 cash from customers in payment of account (no discount allowed). 10 Sold merchandise for cash $6,610. The cost of the merchandise sold was $3,870. 13 Purchased merchandise on account from Gong Co. $8,700, terms 2/10, n/30. 15 Purchased supplies for cash $1,650. 18 Sold merchandise on account $12,600, terms 3/10, n/30. The cost of the merchandise sold was $8,120. 20 Paid salaries $1,910. 23 Paid Gong Co. in full, less discount. 27 Received collections in full, less discounts, from customers billed on December 18.

Explanation / Answer

Journal Entries In the books of Boline Distributing Company $ $ Date Particulars Debit Credit 06-Dec Salaries Account Dr. 630 Salaries and Wages Payable Dr. 1160                          To Cash 1790 (Being salary paid for November & december) 08-Dec Cash Dr. 1820                To Account receivable 1820 (Being cash received from customers) 10-Dec Cash Dr. 6610                 To Sales 6610 (Being sales recorded) 10-Dec Cost of Goods Sold Dr. 3870               To Inventory 3870 (Being inventory reduced to the extent sold) 13-Dec Inventory Dr. 8700                 To Gong Co 8700 (Being inventory purchased) 15-Dec Supplies Dr. 1650                  To Cash 1650 (Being Supplies purchased) 18-Dec Account Receivable Dr. 12600                 To Sales 12600 (Being sales recorded) 18-Dec Cost of Goods Sold Dr. 8120               To Inventory 8120 (Being inventory reduced to the extent sold) 20-Dec Salaries Dr. 1910                  To Cash 1910 (Being Salaries paid) 23-Dec Gong Co Dr. 8700                  To Cash 8526                  To Purchase Discount 174 (Being payment made in Full after deducting discount @ 2%) 27-Dec Cash Dr. 12222 Sales Discount Dr. 378                To Account Receivable 12600 (Being amount received from customers net of Cash Discount @ 3%) TOTAL 68370 68370 Note: We are following net method for recording purchase & sales

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