Merchandise sales journal entries: two sales. Journalize the following entries:
ID: 2362994 • Letter: M
Question
Merchandise sales journal entries: two sales. Journalize the following entries:a. On June 4, LMN Company sold merchandise costing $1,000 for a sales price of $1,800 to RST Company, terms 1/10, n/30.
b. On June 6, LMN Company sold merchandise costing $300 for a sales price of $560 to HIJ Company, terms 1/10, n/30.
c. On June 8, RST Company returned merchandise costing $200 with a sales price of $360 for a credit on its account. Merchandise was put back into inventory.
d. On June 13, RST Company paid their account in full.
e. On July 5, HIJ Company paid their account in full.
f. Compute the following based on the two sales above:
Net Sales =
Gross Profit =
Explanation / Answer
4 Jun Acct Rxable-RST Dr 1800 Sales Cr 1800 Record Sale of 1800 to RST 4 Jun COGS Dr 1000 Merchandise A/C Cr 1000 Record COGS of 1000 6 Jun Acct Rxable-HIJ Dr 560 Sales Cr 560 Record Sale of 560 to HIJ 6 Jun COGS Dr 300 Merchandise A/C Cr 300 Record COGS of 300 10 Sep Sales Return Dr 360 Acct Rxable-RST Cr 360 Record Sales Return 360 (COGS 200) from RST 10 Jun Merchandise A/C Dr 200 COGS Cr 200 Record COGS Return 200 from RST 13 Jun Cash Dr $1,425.60 Sales Disc Dr 14.40 Acct Rxable-RST Cr 1440 As payment rxd within 10 days, 1% disc (1/10, n/30) on (1800-360)*1% is given 5 Jul Cash Dr $560 Acct Rxable-HIJ Cr 560 As payment rxd after 10 days, NNo discount (1/10, n/30) is given Net Sales = 1440+560 COGS (RST 1000-200+ HIJ 300)=1100 ------------------------------- Gross Profit $900