Answer:
See explanation section
Explanation:
Requirement A
Cash Debit $253,000
Sales revenue credit $253,000
<em>Note: To record the sales on cash with no terms and conditions</em>
Cost of goods sold debit $141,870
Merchandise inventory credit $141,870
<em>Note: As the company uses a perpetual inventory system, the company records the cost of merchandise inventory journals.</em>
Requirement B
Customer refunds payable debit $1,600
Cash credit $1,600
<em>Note: Campus Stop, Inc. refunded cash to the customer because of unsatisfactory merchandise.</em>
Merchandise inventory debit $650
Estimated returns inventory credit $650
<em>Note: As the company uses a perpetual inventory system, the company records the cost of merchandise inventory returned journals.</em>
Requirement C.
Accounts receivable debit $10,000
Sales revenue credit $10,000
<em>Note: To record the sales on account with no discounting terms but has to receive the payment within 30 days.</em>
Cost of goods sold debit $4,500
Merchandise inventory credit $4,500
<em>Note: As the company uses a perpetual inventory system, the company records the cost of merchandise inventory journals.</em>
Requirement D and E.
D. Cash Debit $5,000
Accounts receivable Credit $5,000
<em>Note: Collected half of the balance owed by the customer in transaction c.</em>
E. Cash debit $3,400
Merchandise inventory debit $1,600
Accounts receivable credit $5,000
<em>Note: Receive the remaining payment from the customer by granting a discount assuming the buyer paid the remaining part earlier than expected.</em>
