During the months of January and February, Solitare Corporation sold goods to th

Question

During the months of January and February, Solitare Corporation sold goods to three customers. The sequence of events was as follows Jan. 6 Sold goods for $500 to Wizard Inc. with terms 2/10, n/30. The goods cost Solitare $15.5 6 Sold goods to Spyder Corp. for $250 with terms 2/10, n/30. The goods cost Solitare $145 14 Collected cash due from Wizard Inc. Feb. 2 Collected cash due from Spyder Corp 28 Sold goods for $220 to Bridges with terms 2/10, n/45. The goods cost Solitare $115 Required Prepare journal entries to record the transactions, assuming Solitare uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 4 6 8 Record the sales on account of $500 to Wizard Inc. on terms 2/10, n/30 Note: Enter debits before credits Date General Journal Debit Credit Jan. 6 Record entry Clear entry View general journal

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Jan 6 Account receivable-Wizad Inc. 500     Sales revenue 500 (To record sales revenue) Jan 6 Cost of goods sold 155      Merchandise inventory 155 (To record cost of goods sold) Jan 6 Account receivable-Spyder Corp 250     Sales revenue 250 (To record sales revenue) Jan 6 Cost of goods sold 145     Merchandise inventory 145 (To record cost of goods sold) Jan 14 Cash 490 Sales discount 10     Account receivable-Wizard inc. 500 (To record amount received) Feb 2 Cash 250    Account receivable-Spyder Inc. 250 (To record amount received) Feb 28 Account receivable-Bridges 220     Sales revenue 220 (To record sales revenue) Feb 28 Cost of goods sold 115     Merchandise inventory 115 (To record cost of goods sold)

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