Prepare journal entries to record each of the following sales transactions of a
ID: 2407340 • Letter: P
Question
Prepare journal entries to record each of the following sales transactions of a merchandising company. Assume a perpetual inventory system Apr. 1 Sold merchandise for $5,000, granting the customer terms of 5/10, EOM; invoice Apr. 4 The customer in the April 1 sale returned merchandise and received credit far Apr. 11 Received payment for the amount due from the April 1 sale less the return on dated April 1. The cost of the merchandise is $3,000. $580. The merchandise, which had cost $348, is returned to inventory. April 4.Explanation / Answer
Journal Entry Date Description Debit Credit 01-April Account receivable $5,000.00 Sales $5,000.00 To Record Sales Cost of goods sold $3,000.00 Merchandise inventory $3,000.00 To Record Cost of Goods Sold 04-April Sales $580.00 Account receivable $580.00 To Record Sales Return Merchandise inventory $348.00 Cost of goods sold $348.00 To Record Cost of Goods Sold Reverse. 11-April Cash $4,199.00 Discount on Sales ($4420*5%) $221.00 Account Receivable ($5000-$580) $4,420.00 To Record Pament received after Cash Discount