Prepare journal entries to record each of the following sales transactions of a

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 dated April 1 The cost of the merchandise is $3,000 Apr 4 The customer in the April 1 sale returned merchandise and received credit for $580 The merchandise, which had cost $348. is returned to inventory. Apr 11 Received payment for the amount due from the April 1 sale less the return on April 4 done

Explanation / Answer

1-Apr Accounts Receivable 5000 Sales 5000 Cost of Goods sold 3000 Inventory 3000 4-Apr Sales Return 580 Accounts Receivable 580 Inventory 348 Cost of Goods sold 348 11-Apr Cash 4199 (4420*95%) Discount 221 Accounts Receivable 4420

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