Question

Prepare journal entries to record each of the following sales transactions of a merchandising company. The company uses a perpetual inventory system and the gross method
Apr. 1 Sold merchandise for $5,400, with credit terms n/30; invoice dated April 1. The cost of the merchandise is $3,240
Apr 4 The customer in the April 1 sale returned $620 of merchandise for full credit. The merchandise, which had cost $372, is returned to inventory.
Apr 8 Sold merchandise for $2,200, with credit terms of 1/10, n/30; invoice dated April 8. Cost of the merchandise is $1,540.
Apr. 11 Received payment for the amount due from the April 1 sale less the return on April 4.

Answer 1

Answer: please find the explanation column for answers

Explanation:

journal entry to record the sales transaction of a merchandising company:

Date        Account                           Debit           Credit

Apr 1      Account receivables        $5,400

                   Sales                                                   $5,400

To record cost of goods sold

 Apr 1           Cost of merchandise sold       $3,240

          Merchandise inventory                                   $3,240

2. To record sales  return of goods.

Date        Account                           Debit           Credit

 Apr 4             Sales Return       $620.00  

  Account Receivable                                $620.00

Cost of merchandised returned

Apr 4  Merchandise Inventory        $372.00  

 Cost of Goods Sold                                     $372.00

3.To Record Sales made from merchandise

Date        Account                           Debit           Credit

Apr 8      Account Receivable $2,200.00  

                     Sales                                             $2,200.00

To Record cost of merchandise Sold

Apr 8    Cost of Goods Sold             $1,540.00  

Merchandise Inventory                                        $1,540.00

 

4.Journal to record payment received from sales of merchandise

Date        Account                           Debit                Credit

Apr 11     Cash                   $4,780.00  

Account receivable                                            $4,780.00

Calculation

Amount due from Apr 1 st sale less than return on April 4 =Account receivables - Sales Return=   $5,400- $620=$4,780.00