Question

Rite Shoes was involved in the transactions described below.

Purchased $8,700 of inventory on account.

Paid weekly salaries and wages, $970.

Recorded sales for the first week: Cash: $7,600; On account: $5,800.

Paid for inventory purchased in event (1).

Placed an order for $6,700 of inventory.

Required:
Prepare the appropriate journal entry for each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fielRite Shoes was involved in the transactions described below.

Purchased $8,700 of inventory on account.

Paid weekly salaries and wages, $970.

Recorded sales for the first week: Cash: $7,600; On account: $5,800.

Paid for inventory purchased in event (1).

Placed an order for $6,700 of inventory.

Required:
Prepare the appropriate journal entry for each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fiel

Answer 1

Journal Entries :-

S.No.	Particulars	Debit($)	Credit($)
1)	Inventory A/c Dr.	8700
	To Accounts Payable A/c		8700
	(To record inventory purchased)
2)	Salary and Wages A/c Dr.	970
	To Cash A/c		970
	(To Record Salary and Wages Paid)
3)	Cash A/c Dr.	7600
	Accounts Receivable A/c Dr.	5800
	To Sales Revenue A/c ($7600+$5800)		13400
	(To Record Sales)
4)	Accounts Payable A/c Dr.	8700
	To Cash A/c		8700
	(To Record Cash Paid)
5)	No Entry