I need to make journal entries for the following: On January 10, sell merchandis
ID: 2507844 • Letter: I
Question
I need to make journal entries for the following:
On January 10, sell merchandise on account to Rayms $9,800 and Fischer $8,600. Terms 1/10, n/30. Freight $100 for each sale, F.O.B. shipping point.
On January 12, purchase merchandise on account from Zapfel $3,000 and Liotta $2,400. Terms 2/10, n/30. Freight $120 for each sale, F.O.B. destination.
On January 10, sell merchandise on account to Rayms $9,800 and Fischer $8,600. Terms 1/10, n/30. Freight $100 for each sale, F.O.B. shipping point.
On January 12, purchase merchandise on account from Zapfel $3,000 and Liotta $2,400. Terms 2/10, n/30. Freight $120 for each sale, F.O.B. destination.
Explanation / Answer
DR Accounts receivable 18,400
CR Sales revenue 18,400 (Buyer pays freight)
DR Inventory 5,400
CR Accounts payable 5,400 (Seller pays freight)