The journal entry will be prepared thus:
Date General Journal Debit Credit
2-Aug
Cash $540
Unearned Service Revenue $378
Sales Revenue $162
2-Aug
Cost of goods sold $105
Inventory $105
3-Aug
Accounts receivable $550
Sales revenue $550
3-Aug
Cost of goods sold $450
Inventory $450
6-Aug
Sales return (550/5) $110
Accounts receivable $110
6-Aug
Inventory $90
Cost of goods sold (450/5) $90
10-Aug
Unearned service revenue $126
Service Revenue $126
(378/3 = 126 each)
20-Aug
Cash $350
Sales revenue $350
20-Aug
Cost of goods sold $121
Inventory $121
22-Aug
Cash $440
Accounts receivable $440
<h3>What is a journal entry?</h3>
A journal entry is the act of recording any transaction, whether one that is economic or not.
An accounting diary that displays the debit and credit balances of a corporation lists transactions. Multiple recordings, each of which is either a debit or a credit, may be included in the journal entry.
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Aug.2 Sold a bundle of spa services with a merchandise basket. When sold separately, the spa service part of the bundle sells for $420 and the merchandise basket normally sells for $180. Together, the bundle was sold to Val Amy for cash at a selling price of $540 (total). Val booked a spa treatment for August 10, and she took the basket of goods with her. The goods had cost NGS $105.
Aug.3 Sold 5 identical items of merchandise to Cosmetics R Us on account at a selling price of $550 (total); terms n/30. The goods cost NGS $450.
Aug.6 Cosmetics R Us returned one of the five items purchased on August 3. The item could still be sold by NGS in the future and credit was given to the customer.
Aug.10 Val Amy used one of the three spa treatments she had purchased as part of the bundle sold to her on August 2.
Aug.20 Sold two at-home spa kits to Meghan Witzel for $350 cash. The goods cost NGS $121.
Aug.22 Cosmetics R Us paid its remaining account balance in full.
Prepare all journal entries
