Following are recent transactions and other events involving Tremendous Tresses,
ID: 2349652 • Letter: F
Question
Following are recent transactions and other events involving Tremendous Tresses, a company that markets hair-care products.June 1 Customer purchased $400 of merchandise on credit with terms of n/60.
June 5 Wrote off an uncollectible account receivable of #350
June 15 Customer purchased $1,200 of merchandise on credit with terms of 2/10, n /30
June 17 Customer who purchased merchandise on June 1 returned $60 of that merchandise
because it was defective.
June 25 Received amount due from customer who purchased merchandise on June 15
June 29 Received payment in full from customer whose account balance was written off on June 5.
June 30 Received amount due from customer who purchased merchandise on June 1.
Prepare journal entries to record each of these transactions or events.
Explanation / Answer
6/1 DR Accounts Receivable (A/R) 400 CR Sales Revenue (S/R) 400 6/5 DR Allowance for Doubtful Accounts (ADA) 350 CR A/R 350 6/15 DR A/R 1,200 CR S/R 1,200 6/17 DR Sales Returns 60 CR A/R 60 6/25 DR Cash 1117.20 DR Sales Discounts 22.80 (1140 *.02) CR A/R 1140 6/29 DR A/R 350 CR ADA 350 DR Cash 350 CR A/R 350 6/30 DR Cash 400 CR A/R 400