ACME Distribution, Inc. December 31, 2016 Selected Transactions Read through the

Question

ACME Distribution, Inc. December 31, 2016 Selected Transactions Read through the information bolow for selected transactions during the month of December, 2016 and prepare the required jounal entry to record the transaction. Post each of the entries below to the general ledger T-accounts attached On December 5, ACME purchased $56,250 of merchandise on account from Indiana Corp terms 3/10, n/30 Date Account description Debit Credit Sold Merchandise for $5,000 to Lee Corp on account on December 7. Cost of the merchandise was $3,390 and the terms of the sale were 2/15, n/30 Date Account description Debit Credit On December 14 ACME wrote a check to Indiana Corp for the purchase made on December 5 to take advantage of the purchase discount. Date tion Credit On December 15, Lee Corp requested credit for $500 of defective merchandise included in their December 7 purchase. We granted them an allowance and they disposed of the defective merchandise at our request. Date Account description Credit Lee Corp paid their balance due taking the sales discount offered on December 19. Date Debit

Explanation / Answer

journal entries t accounts date account description debit credit 5-Dec inventory 56250 inventory accounts payable accounts payable 56250 beginning balance 25558 56250 14200 56250 3390 56250 07-Dec accounts receivable 5000 1688 sales 5000 cost of goods sold 3390 inventory 3390 14-Dec accounts payable 56250 accounts receivable sales cash 54562 beginning balance 42400 500 729300 inventory 1688 5000 4500 5000 15-Dec sales returns & allowance 500 accounts receivable 500 19-Dec cash 4410 cost of goods sold sales discounts sales discount 90 beginning balance 532310 1885 accounts receivable 4500 3390 90 20-Dec cash 1550 common stock 500 additional paid-in capital 1050 cash sales returns & allowance beginning balance 103212 beginning balance 250 21-Dec supplies 1350 4410 54562 500 cash 1350 1550 1350 2500 1650 21-Dec cash 2500 4250 unearned revenue 2500 23-Dec utilities expense 1650 common stock additional paid-in capital cash 1650 beginning balance 1200 beginning balance 900 500 1050 23-Dec dividends 1360 dividends payable 1360 supplies unearned revenue 28-Dec salaries payable 4250 beginning balance 145 2500 cash 4250 1350 utilities expense dividends beginning balance 18000 beginning balance 24000 1650 1360 dividends payable salaries payable 1360 beginning balance 4250 4250

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