JOURNAL ENTRY WORKSHEET a(1). Record the cash sales of $620,000. a(2). Record th
ID: 2548503 • Letter: J
Question
JOURNAL ENTRY WORKSHEET
a(1). Record the cash sales of $620,000.
a(2). Record the cost of goods sold of $289,350.
b(1). Record the return by a customer of unsatisfactory merchandise that was in perfect condition. A cash refund of $5,400 was given to the customer.
b(4). Record the merchandise returned by the customer back into inventory. The original cost of the merchandise was $3,500.
c(1). Record the sales on account of $11,400 on terms 2/10, n/30.
c(2). Record the cost of goods sold of $6,840.
d. Record the collection of half of the balance of $5,586 owed by the customer within the discount period.
e. Record the allowance of $1,750 to the customer.
LBS is considering a contract to sell building supplies to a local home builder for $28,000. These materials will cost LBS $20,800. What would be the increase (or decrease) gross profit and gross profit percentage?
LBS is considering a contract to sell building supplies to a local home builder for $28,000. These materials will cost LBS $20,800. What would be the increase (or decrease) gross profit and gross profit percentage?
Gross Profit by Gross Profit Percentage to %Explanation / Answer
Solution 1:
Solution 2:
Increase in gross profit = Sales - COGS = $28,000 - $20,800 = $7,200
Change in gross profit percentage cannot be calculated as earlier gross profit and its percentage is not available.
Journal Entries Event Particulars Debit Credit a1 Cash Dr $620,000.00 To Sales Revenue $620,000.00 (Being cash sales recorded) a2 Cost of goods sold Dr $289,350.00 To Inventories $289,350.00 (Being goods sold transferred to COGS) b1 Sales Revenue Dr $5,400.00 To Cash $5,400.00 (Being merchandise returned by customer) b4 Inventories Dr $3,500.00 To Cost of goods sold $3,500.00 (Being goods returned transferred to inventory) c1 Accounts receivables Dr $11,400.00 To Sales Revenue $11,400.00 (Being credit sales recorded, terms 2/10, n/30) c2 Cost of goods sold Dr $6,840.00 To Inventories $6,840.00 (Being goods sold transferred to COGS) d Cash Dr (5586*50%*98%) $2,737.00 Sales Discount Dr ($5,586*50%*2%) $56.00 To Accounts receivables $2,793.00 (Being cash collected from customer within discount period) e Sales Discount Dr $1,750.00 To Accounts receivables $1,750.00 (Being allowance given to customer)Related Questions
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