Charlie Company uses a perpetual inventory system. During May, the following tra
ID: 2571602 • Letter: C
Question
Charlie Company uses a perpetual inventory system. During May, the following transactions and events occurred.
Journalize the May transactions for Charlie Company (seller) assuming that Charlie uses a perpetual inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 5,275.)
Date
Account Titles and Explanation
Debit
Credit
(To record credit sale.)
(To record cost of good sold.)
(To record goods returned.)
(To record cost of good returned.)
May 23
May 13 Sold 8 motors at a cost of $45 each to Scruffy Brothers Supply Company, terms 4/10, n/30. The motors cost Charlie $26 each. May 16 One defective motor was returned to Charlie. May 23 Received payment in full from Scruffy Brothers.Explanation / Answer
13-May accounts receivable 360 (45*8) Sales revenue 360 13-May Cost of goods sold 208 (26*8) Inventory 208 16-May Sales return and allowance 45 Accounts receivable 45 16-May Inventory 26 Cost of goods sold 26 23-May Cash 302.4 Sales discount 12.6 (315*4%) Accounts receivable 315