Q2. Sami’s Skateboards uses the periodic inventory system and had the following
ID: 2537945 • Letter: Q
Question
Q2. Sami’s Skateboards uses the periodic inventory system and had the following sales transactions during May: (3 MARKS)
May 2
Sold merchandise to Ahmad Shop on credit for SAR 4,800, terms 1/15, n/60. The items sold had a cost of SAR $2,700.
May 4
Ahmad Shop returned merchandise that had a selling price of SAR 200. The cost of the merchandise returned was SAR110.
May 13
Ahmad Shop paid for the merchandise sold on May 2, taking any appropriate discount earned
Prepare the journal entries that Sami’s Skateboards must make to record these transactions.
May 2
Sold merchandise to Ahmad Shop on credit for SAR 4,800, terms 1/15, n/60. The items sold had a cost of SAR $2,700.
May 4
Ahmad Shop returned merchandise that had a selling price of SAR 200. The cost of the merchandise returned was SAR110.
May 13
Ahmad Shop paid for the merchandise sold on May 2, taking any appropriate discount earned
Explanation / Answer
Journal entry :
Date accounts & explanation debit Credit May 2 Account receivable 4800 Sales revenue 4800 (To record sales) May 4 Sales return and allowances 200 Account receivable 200 (To record sales return and allowance) May 13 Cash 4554 Sales discount (4600*1%) 46 Account receivable 4600 (To record amount received)Related Questions
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