Question

Journalize the following transactions assuming the perpetual inventory system:July 3 Sold merchandise on account for $3,750 including terms. The cost of the merchandise sold was $2,000.July 5 Issued credit memo for $1,050 for merchandise returned from sale on July 3. The cost of the merchandise returned was $610.July12 Received check for the amount due for sale on July 3 less return on July 5.July 17 Sold merchandise for $7,000 plus 6% sales tax to cash customers. The cost of the merchandise sold was $3,830.

Answer 1

Answer:

Explanation:

The journal entries are shown below:

On July 3

Account receivable A/c Dr $3,750

          To Sales $3,750

(Being the goods are sold on credit)

Cost of goods sold A/c Dr $2,000

     To Merchandise Inventory A/c                   $2,000

(Being goods are sold at cost)

On July 5

Sales return and allowance A/c Dr $1,050

            To Accounts receivable $1,050

(Being sales return is recorded)

Merchandise Inventory A/c                   $610

            To  Cost of goods sold A/c Dr $610

(Being sales return is recorded)

On July 12

Cash A/c Dr $2,700                               ($3,050 - $1,050)

         To Accounts receivable $2,700

(Being cash is received)

On July 17

Cash A/c Dr $7,420

             To Sales A/c $7,000

             To Sales tax payable A/c $420    ($7,000 × 6%)

(Being the goods are sold on credit)

Cost of goods sold A/c Dr $3,830

     To Merchandise Inventory A/c                 $3,830

(Being goods are sold at cost)