Alled Parts was organized on May 1, 2015, and made its first purchase ofl mercha
ID: 2539515 • Letter: A
Question
Alled Parts was organized on May 1, 2015, and made its first purchase ofl merchandise on May 3. The a On May 7, Baker retums 357 units because they did not ft the oustomer's needs Allied Parts estores b. On May &Baker; discovers that 85 units are damaged but are still of some use and theretore keeps the the units to its inventory discovers hat 1 Allied Parts sends a $122 oredit memerandum to compensate. Baker retums the remaining 41 unts to Allied Parts. Allied Parts restores the 41 neturned units to its inventory Prepare entries for Allied Pats to necord the May 5 sale and each of the above separate trasactions using Journal entry worksheet Allied Parts sold 1.020 of the units for $12 per unit to Baker Co On May 5. Allied Parts sold 1.020 of the units for $12 per unit to Baker Co. Terms of the sale were 2/10, n/60. May 05 00Explanation / Answer
Journal entries
date
explanation
debit
credit
5-May
accounts receivables
12240
sales
12240
5-May
cost of goods sold
8160
inventory
8160
7-May
sales return and allowance
4284
accounts receivables
4284
7-May
inventory
2856
cost of goods sold
2856
8-May
sales return and allowance
340
accounts receivables
340
15-May
inventory
122
cost of goods sold
122
15-May
sales return and allowance
492
accounts receivables
492
15-May
cost of goods sold
328
inventory
328
Journal entries
date
explanation
debit
credit
5-May
accounts receivables
12240
sales
12240
5-May
cost of goods sold
8160
inventory
8160
7-May
sales return and allowance
4284
accounts receivables
4284
7-May
inventory
2856
cost of goods sold
2856
8-May
sales return and allowance
340
accounts receivables
340
15-May
inventory
122
cost of goods sold
122
15-May
sales return and allowance
492
accounts receivables
492
15-May
cost of goods sold
328
inventory
328
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