Ceres computer sales uses the perpetual inventory system and had the following t
ID: 2379092 • Letter: C
Question
Ceres computer sales uses the perpetual inventory system and had the following transactions during December. Answers will vary.
Dec. 1 Ceres SOLD merchandise to ABC, Inc. on credit for $8,000, terms 2/15, n/45. The items sold had a cost of $2,500.
Dec. 6 Ceres PURCHASED merchandise from Jones, Inc. on credit for $5,000, terms 2/10, n/30.
Dec. 7 ABC, Inc. returned $800 of goods purchased on Dec 1. (original cost of the goods to ABC is $250).
Dec. 11 ABC, Inc. pays amount owed from purchase on Dec. 1 (within discount period).
Dec. 12 Ceres receives an allowance of $300 for goods purchased on Dec. 6.
Dec. 14 Ceres pays for goods purchased on Dec. 6 (within discount period).
What would the general journal entries look like for this transactions?
Explanation / Answer
Dec. 1
Dr. Accounts Receivable...7,000
Cr. Sales Revenue...7,000
Dr. Cost of Goods Sold...2,500
Cr. Inventory...2,500
Dec. 6
Dr. Inventory...2,000
Cr. Accounts Payable...2,000
Dec. 7
Dr. Sales Returns and Allowances...700
Cr. Accounts Receivable...700
Dr. Inventory...250
Cr. Cost of Goods Sold...250
Dec. 11
Dr. Cash...6,860
Dr. Sales Discounts...140
Cr. Accounts Receivable...7,000
Dec. 12
Dr. Accounts Payable...200
Cr. Purchases Returns and Allowances...200
Dec. 14
Dr. Accounts Payable...1,800
Cr. Cash...1,764
Cr. Inventory...36