Question

On December 1, 2017, Prosen Distributing Company had the following account balances. Debit Credit Cash $7,400 Accumulated Depreciation—Equipment $2,200 Accounts Receivable 5,000 Accounts Payable 4,900 Inventory 11,700 Salaries and Wages Payable 1,200 Supplies 1,300 Common Stock 30,000 Equipment 22,000 Retained Earnings 9,100 $47,400 $47,400 During December, the company completed the following summary transactions. Dec. 6 Paid $1,700 for salaries and wages due employees, of which $500 is for December and $1,200 is for November salaries and wages payable. 8 Received $1,900 cash from customers in payment of account (no discount allowed). 10 Sold merchandise for cash $6,900. The cost of the merchandise sold was $4,200. 13 Purchased merchandise on account from Maglio Co. $8,500, terms 2/10, n/30. 15 Purchased supplies for cash $1,600. 18 Sold merchandise on account $12,200, terms 3/10, n/30. The cost of the merchandise sold was $8,300. 20 Paid salaries and wages $1,900. 23 Paid Maglio Co. in full, less discount. 27 Received collections in full, less discounts, from customers billed on December 18.

Answer 1

Date	Account title	Debit	credit
Dec 6	salaries and wage expense	500
	salaries and wage payable	1200
	cash		1700
Dec 8	Cash	1900
	Accounts receivable		1900
Dec 10 a)	cash	6900
	sales revenue		6900
	cost of goods sold	4200
	merchandise inventory		4200
Dec13	merchandise inventory	8500
	Accounts payable		8500
Dec 15	supplies	1600
	cash		1600
Dec18	accounts receivable	12200
	sales revenue		12200
	cost of goods sold	8300
	merchandise inventory		8300
Dec20	salaries andwage expense	1900
	cash		1900
Dec 23	Accounts payable	8500
	merchandise inventory [8500*.02]		170
	cash		8330
Dec 27	cash	11834
	sales discount and allowance [12200*.03]	366
	Accounts receivable		12200