1. Record the following transactions for Sparky\'s Pet Shop using the general jo
ID: 2523576 • Letter: 1
Question
1. Record the following transactions for Sparky's Pet Shop using the general journal form provided below. Assume Sparky's uses a perpetual inventory system. Omit transaction descriptions from entries: Date ransaction uly 3 Sold merchandise on account for $3,750. The cost of the merchandise sold was $2,000 July 5 July 12 August 1 August 3 August 7 August 10 August 11 August 20 lissued credit memo for the $1,050 for merchandise returned from sale on July 3. The cost of the merchandise returned was $610. Received check for the amount due for sale of July 3 less return on July 5. Purchased $6,000 of merchandise on account, terms 2/10, n/30. Returned S1,500 of merchandise purchased on August 1 due to defects. Recorded cash sales for the first week of August, $9,750 plus 6% sales taxes; cost of the merchandise was $4,000. Made sale on account to a local breeder for $500, terms 1/10 net 30; cost of the merchandise was $200 Paid for the merchandise purchased on August I, less return. Received payment from sale of August 10.Explanation / Answer
03-Jul Accounts receivable 3750 Sales revenue 3750 Cost of goods sold 2000 Inventory 2000 05-Jul Sales return and allowance 1050 Accounts receivable 1050 Inventory 610 Cost of goods sold 610 12-Jul Cash 2700 Accounts receivable 2700 01-Aug Inventory 6000 Accounts payable 6000 03-Aug Accounts payable 1500 Inventory 1500 07-Aug Cash 10335 Sales revenue 9750 Sales tax payable 585 (9750*6%) 10-Aug Accounts receivable 500 Sales revenue 500 Cost of goods sold 200 Inventory 200 11-Aug Accounts payable 4500 Cash 4410 Purchase discount 90 20-Aug Cash 495 Sales return and allowance 5 Accounts receivable 500
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