3. Prepare journal entries to record transactions (a e). (f no entry is required

Question

3. Prepare journal entries to record transactions (a e). (f no entry is required for a transactionlevent, select "No Journal Entry Required" in the first account field.) aotian s Journal entry worksheet Transaction Index Numerical Alphabetical 1 2 3 45 6 78 Record the cash sales of $740,000. Record the cost of goods sold of $353,350. Record the return by a customer of unsatisfactory merchandise that was in perfect condition. A cash refund of Record the merchandise returned by the customer back into inventory. The original cost of the merchandise wa Record the sales on account of $17,800 on terms 2/10, n/30. Record the cost of goods sold of S10,680. Record the collection of half of the balance of S8,722 owed by the customer within the discount period. Record the allowance of $2,550 to the customer. . Note: Enter debits before credits General Journal Debit Credit afl

Explanation / Answer

Solution :

Journal Entries Event Particulars Debit Credit a1 Cash Dr $740,000.00       To Sales Revenue $740,000.00 (Being cash sales recorded) a2 Cost of goods sold Dr $353,350.00       To Inventories $353,350.00 (Being goods sold transferred to COGS) b1 Sales Revenue Dr $7,800.00       To Cash $7,800.00 (Being merchandise returned by customer) b2 Inventories Dr $5,100.00       To Cost of goods sold $5,100.00 (Being goods returned transferred to inventory) c1 Accounts receivables Dr $17,800.00       To Sales Revenue $17,800.00 (Being credit sales recorded, terms 2/10, n/30) c2 Cost of goods sold Dr $10,680.00       To Inventories $10,680.00 (Being goods sold transferred to COGS) d Cash Dr (17800*50%*98%) $8,722.00 Sales Discount Dr ($17,800*50%*2%) $178.00       To Accounts receivables $8,900.00 (Being cash collected from customer within discount period) e Sales Discount Dr $2,550.00       To Accounts receivables $2,550.00 (Being allowance given to customer)

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