Question

Record the following transactions on the books of Carla Vista Co. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (a) On July 1, Carla Vista Co. sold merchandise on account to Stacey Inc. for $25,230, terms 4/10, n/30. (b) On July 8, Stacey Inc. returned merchandise worth $5,230 to Carla Vista Co. (c) On July 11, Stacey Inc. paid for the merchandise.

Answer 1

Answer:

Journal entries

Explanation:

The journal entries are as follows  

On July 1

Account receivable A/c Dr $25,230

           To Sales revenue $25,230

(Being the goods are sold on credit)

On July 8

Sales return and allowance A/c Dr 5,230

        To Accounts receivable $5,230

(Being sales return is recorded)  

On July 12

Cash A/c Dr $19,200

Sales discount $800     ($20,000 × 4%)

                  To Accounts receivable $20,000   ($25,230 - $5,230)