Question

Prepare journal entries to record each of the following sales transactions of a merchandising company.

The company uses a perpetual inventory system and the gross method. Apr. 1 Sold merchandise for $3,200, with credit terms n/30; invoice dated April 1. The cost of the merchandise is $1,920. Apr. 4 The customer in the April 1 sale returned $400 of merchandise for full credit. The merchandise, which had cost $240, is returned to inventory. Apr. 8 Sold merchandise for $1,100, with credit terms of 1/10, n/30; invoice dated April 8. Cost of the merchandise is $770. Apr. 11 Received payment for the amount due from the April 1 sale less the return on April 4.

Answer 1

Prepare journal entries to record each of the following sales transactions of a merchandising company.

Date	General Journal	Debit	Credit
Apr 1	Accounts receivables	3,200
	Sales		3,200
	Cost of goods sold	1,920
	Inventory		1,920
Apr 4	Sales returns and allowances	400
	Accounts receivables		400
	Inventory	240
	Cost of goods sold		240
Apr 8	Accounts receivables	1,100
	Sales		1,100
	Cost of goods sold	770
	Inventory		770
Apr 11	Cash (3,200 - 400)	2,800
	Accounts receivables		2,800