Question

Accounting for Sales Transactions
Kate Company uses the perpetual inventory system. Record the journal entries for the following transactions:

a. On July 16, Kate sold $600 of merchandise with terms of 2/10, n/30. The cost of the merchandise was $360.

b. On July 19, the customer returned $100 of the merchandise from (a). The cost of the merchandise was $60.

c. On July 22, the customer paid the entire balance due to Kate.

General Journal
Ref.	Description	Debit	Credit
a.	AnswerAccounts receivableCashCost of goods soldInventorySales discountsSales returnsSales revenue	Answer	Answer
	AnswerAccounts receivableCashCost of goods soldInventorySales discountsSales returnsSales revenue	Answer	Answer
	To record sale of merchandise.
	AnswerAccounts receivableCashCost of goods soldInventorySales discountsSales returnsSales revenue	Answer	Answer
	AnswerAccounts receivableCashCost of goods soldInventorySales discountsSales returnsSales revenue	Answer	Answer
	To record cost of merchandise sold.
b.	AnswerAccounts receivableCashCost of goods soldInventorySales discountsSales returnsSales revenue	Answer	Answer
	AnswerAccounts receivableCashCost of goods soldInventorySales discountsSales returnsSales revenue	Answer	Answer
	To record return of merchandise sold.
	AnswerAccounts receivableCashCost of goods soldInventorySales discountsSales returnsSales revenue	Answer	Answer
	AnswerAccounts receivableCashCost of goods soldInventorySales discountsSales returnsSales revenue	Answer	Answer
	To record cost of merchandise sold.
c.	Cash	Answer	Answer
	AnswerAccounts receivableCashCost of goods soldInventorySales discountsSales returnsSales revenue	Answer	Answer
	AnswerAccounts receivableCashCost of goods soldInventorySales discountsSales returnsSales revenue	Answer	Answer

Please help with part C!!!!

Answer 1

Journal entry :

Date	account and explanation	debit	credit
July 16	Account receivable	600
	Sales revenue		600
	(To record Sales)
	Cost of goods sold	360
	Inventory		360
	(To record cost of goods sold)
July 19	Sales return and allowance	100
	Account receivable		100
	(To record sales return)
	Inventory	60
	Cost of goods sold		60
	(To record cost of goods return)
July 22	Cash (500*98%)	490
	Sales discount	10
	Account receivable		50
	(To record amount received)