During the months of January and February, Solitare Corporation sold goods to th
ID: 2514650 • Letter: D
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 $155 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 transactionlevent, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 3 4 6 8 Record the cost of goods sold of $145. Note: Enter debits before credits Date General Journal Debit Credit Jan. 06 Record entry Clear entry View general journalExplanation / Answer
Answer
Date
Accounts Titles
Debit
Credit
06-Jan
Accounts Receivables
$ 500.00
Sales Revenue
$ 500.00
06-Jan
Cost of Goods Sold
$ 155.00
Inventory
$ 155.00
06-Jan
Accounts Receivables
$ 250.00
Sales Revenue
$ 250.00
06-Jan
Cost of Goods Sold
$ 145.00
Inventory
$ 145.00
14-Jan
Cash
$ 490.00
Sales Discount
$ 10.00
Accounts Receivables
$ 500.00
(cash received within 10 days term, hence 2% discount on $500)
02-Feb
Cash
$ 250.00
Accounts Receivables
$ 250.00
(Cash received after 10 days term, hence no cash discount)
28-Feb
Accounts Receivables
$ 220.00
Sales Revenue
$ 220.00
28-Feb
Cost of Goods Sold
$ 115.00
Inventory
$ 115.00
Date
Accounts Titles
Debit
Credit
06-Jan
Accounts Receivables
$ 500.00
Sales Revenue
$ 500.00
06-Jan
Cost of Goods Sold
$ 155.00
Inventory
$ 155.00
06-Jan
Accounts Receivables
$ 250.00
Sales Revenue
$ 250.00
06-Jan
Cost of Goods Sold
$ 145.00
Inventory
$ 145.00
14-Jan
Cash
$ 490.00
Sales Discount
$ 10.00
Accounts Receivables
$ 500.00
(cash received within 10 days term, hence 2% discount on $500)
02-Feb
Cash
$ 250.00
Accounts Receivables
$ 250.00
(Cash received after 10 days term, hence no cash discount)
28-Feb
Accounts Receivables
$ 220.00
Sales Revenue
$ 220.00
28-Feb
Cost of Goods Sold
$ 115.00
Inventory
$ 115.00
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