Answer:
Cougar Corp.
Journal Entries
1. Jan. 1:
Debit Inventory $6,500
Credit Accounts payable $6,500
To record the purchase of inventory on account, credit terms 1/10, net 30.
2. Jan. 2:
Debit Freight-in $110
Credit Cash $110
To record the freight for January 1 purchase.
3. Jan. 5:
Debit Accounts receivable $3,700
Credit Sales Revenue $3,700
To record the sale of goods on account, credit terms, 2/15, net 30.
Debit Cost of Goods Sold $2,600
Credit Inventory $2,600
To record the cost of goods sold.
4. Jan. 6:
Debit Accounts Payable $950
Credit Inventory $950
To record the return of goods on account.
5. Jan. 7:
Debit Freight-out $210
Credit Cash $210
To record the payment for freight for goods sold.
6. Jan. 9:
Debit Accounts Payable $5,550
Credit Cash $5,494
Credit Cash Discounts $56
To record the payment on account.
7. Jan. 10:
Debit Cash $3,626
Debit Cash Discounts $74
Credit Accounts Receivable $3,700
To record the receipt of cash on account.
Explanation:
a) Data and Analysis:
1. Jan 1: Inventory $6,500 Accounts Payable $6,500
2. Jan. 2: Freight-in $110 Cash $110
3. Jan. 5: Accounts Receivable $3,700 Sales Revenue $3,700
4. Jan.6: Accounts payable $950 Inventory $950
5. Jan. 7: Freight-out $210 Cash $210
6. Jan. 9: Accounts Payable $5,550 Cash $5,494 Cash Discounts $56
7. Jan. 10: Cash $3,626 Cash Discounts $74 Accounts Receivable $3,700
