Answer:
EcoMart Merchandising
Journal Entries
Oct. 1 Debit Accounts Receivable $1,500
Credit Sales Revenue $1,500
To record the sale of goods on account with credit terms n∕30, invoice dated October 1.
Debit Cost of goods sold $900
Credit Inventory $900
To record the cost of goods sold.
Oct. 6 Debit Sales Returns $150
Credit Accounts Receivable $150
To record the return of some goods sold on account.
Debit Inventory $90
Credit Cost of goods sold $90
To record the cost of goods returned.
Oct. 9 Debit Accounts Receivable $700
Credit Sales Revenue $700
To record the sale of recycled goods with credit terms of 1∕10, n∕30, invoice dated October 9
Debit Cost of goods sold $450
Credit Inventory $450
To record the cost of the goods sold.
Oct. 11 Debit Cash $1,350
Credit Accounts Receivable $1,350
To record the receipt of cash on account.
Explanation:
a) Data and Analysis:
Oct. 1 Accounts Receivable $1,500 Sales Revenue $1,500 with credit terms n∕30, invoice dated October 1.
Cost of goods sold $900 Inventory $900
Oct. 6 Sales Returns $150 Accounts Receivable $150
Inventory $90 Cost of goods sold $90
Oct. 9 Accounts Receivable $700 Sales Revenue $700 with credit terms of 1∕10, n∕30, invoice dated October 9
Cost of goods sold $450 Inventory $450
Oct. 11 Cash $1,350 Accounts Receivable $1,350
