Answer:
Sep. 3
Dr Merchandise Inventory $7,000
Cr Accounts Payable—Shallin Wholesalers $7,000
Sep. 4
Dr Merchandise Inventory $55
Cr Cash $55
Sep. 4
Dr Merchandise Inventory $2,100
Cr Cash $2,100
Sep. 6
Dr Accounts Payable—Shallin Wholesalers $1,000
Cr Inventory $1,000
Sep. 8
Dr Accounts Receivable— Herenda Company $5,445
Cr Sales Revenue $5,445
Sep. 8
Dr Cost of Goods Sold $2,255
Cr Merchandise Inventory $2,255
Sep. 9
Dr Merchandise Inventory $10,000
Cr Accounts Payable—Tripp Wholesalers $10,000
Sep. 10
Dr Accounts Payable—Shallin Wholesalers $6,000
Cr Merchandise Inventory $60
Cr Cash $5,940
Sep. 12
Dr Cash $5,445
Accounts Receivable—Herenda Company $5,445
Sep. 13
Dr Accounts Payable—Tristan Wholesalers $100
Cr Merchandise Inventory $100
Sep. 15
Dr Accounts Receivable—Jesper Company $3,500
Cr Sales Revenue $3,500
Sep. 15
Dr Cost of Goods Sold $1,610
Cr Merchandise Inventory $1,610
Sep. 22
Dr Accounts Payable—Tristan Wholesalers $9,900
Cr Cash $9,900
Sep. 23
Dr Refunds Payable $800
Cr Accounts Receivable—Jesper Company $800
Sep. 23
Dr Merchandise Inventory $368
Cr Estimated Returns Inventory $368
Sep. 25
Dr Accounts Receivable—Smithson $1,995
Cr Sales Revenue $1,940
Cr Cash $55
Sep. 25
Dr Cost of Goods Sold $780
Cr Merchandise Inventory $780
Sep. 29
Dr Cash $1,995
Cr Accounts Receivable— Smithson $1,995
Sep. 30
Dr Cash $2,100
Cr Accounts Receivable—Jesper Company $2,100
Explanation:
Preparation of the journal entries
Sep. 3
Dr Merchandise Inventory $7,000
Cr Accounts Payable—Shallin Wholesalers $7,000
Sep. 4
Dr Merchandise Inventory $55
Cr Cash $55
Sep. 4
Dr Merchandise Inventory $2,100
Cr Cash $2,100
Sep. 6
Dr Accounts Payable—Shallin Wholesalers $1,000
Cr Inventory $1,000
Sep. 8
Dr Accounts Receivable— Herenda Company $5,445
Cr Sales Revenue $5,445
[$5,500-(1%*$5,500)]
Sep. 8
Dr Cost of Goods Sold $2,255
Cr Merchandise Inventory $2,255
Sep. 9
Dr Merchandise Inventory $10,000
Cr Accounts Payable—Tripp Wholesalers $10,000
Sep. 10
Dr Accounts Payable—Shallin Wholesalers $6,000
($7,000-$1,000)
Cr Merchandise Inventory $60
(1%*$6,000)
Cr Cash $5,940
($6,000-$60)
Sep. 12
Dr Cash $5,445
[$5,500-(1%*$5,500)]
Accounts Receivable—Herenda Company $5,445
Sep. 13
Dr Accounts Payable—Tristan Wholesalers $100
Cr Merchandise Inventory $100
Sep. 15
Dr Accounts Receivable—Jesper Company $3,500
Cr Sales Revenue $3,500
Sep. 15
Dr Cost of Goods Sold $1,610
Cr Merchandise Inventory $1,610
Sep. 22
Dr Accounts Payable—Tristan Wholesalers $9,900
Cr Cash $9,900
($10,000-$100)
Sep. 23
Dr Refunds Payable $800
Cr Accounts Receivable—Jesper Company $800
Sep. 23
Dr Merchandise Inventory $368
Cr Estimated Returns Inventory $368
Sep. 25
Dr Accounts Receivable—Smithson $1,995
($1,940+$55)
Cr Sales Revenue $1,940
[$2,000-(3%*$2,000)]
Cr Cash $55
Sep. 25
Dr Cost of Goods Sold $780
Cr Merchandise Inventory $780
Sep. 29
Dr Cash $1,995
($1,940+$55)
Cr Accounts Receivable— Smithson $1,995
Sep. 30
Dr Cash $2,100
Cr Accounts Receivable—Jesper Company $2,100
