Journalize the September transactions. The following transactions are for Solart

Question

Journalize the September transactions. The following transactions are for Solarte Company. On December 3, Solarte Company sold $500,000 of merchandise to Rooney Co., terms 1/10, n/30. The cost of the merchandise sold was $330,000. On December 8, Rooney Co. was granted an allowance of $25,000 for merchandise purchased on December 3. On December 13, Solarte Company received the balance due from Rooney Co. Instructions (a) Prepare the journal entries to record these transactions on the books of Solarte Company Solarte uses a perpetual inventory system.

Explanation / Answer

DATE DESCRIPTION DEBIT $ CREDIT $ DEC 3 ACCOUNTS RECEIVABLE 500000 COST OF GOODS SOLD 330000 SALES REVENUE 500000 MERCHANDISE INVENTORY 330000 DEC 8 SALES RETURN & ALLOWANCES 25000 ACCOUNTS RECEIVABLE 25000 DEC 13 CASH 470250 SALES DISCOUNT [(500000 - 25000) * 1%] 4750 ACCOUNTS RECEIVABLE (500000 - 25000) 475000

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