During the months of January and February, Solitare Corporation sold goods to th

Question

During the months of January and February, Solitare Corporation sold goods to three customers. The sequence of events was as follows: Jan. 6 Sold goods for $450 to Wizard Inc. with terms 2/10, n/30. The goods cost Solitare $140. 6 Sold goods to Spyder Corp. for $220 with terms 2/10, n/30. The goods cost Solitare $130. 14 Collected cash due from Wizard Inc. Feb. 2 Collected cash due from Spyder Corp. 28 Sold goods for $190 to Bridges with terms 2/10, n/45. The goods cost Solitare $100. Required: Prepare journal entries to record the transactions, assuming Solitare uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Explanation / Answer

06-Jan Accounts Receivable 450 Sales Revenue 450 06-Jan Cost of goods sold 140 Inventory 140 06-Jan Accounts Receeivable 220 Sales Revenue 220 06-Jan Cost of goods sold 130 Inventory 130 14-Jan Cash* 441 Sales Discount 9 Accounts Receivable 450 02-Feb Cash 220 Accounts Receivable 220 28-Feb Accounts Receivable 190 Sales Revenue 190 28-Feb Cost of goods sold 100 Inventory 100 *Cash = 450 * 98% = 441

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.