Question

Journal Entries for Merchandise Transactions on Seller’s and Buyer’s Records—Periodic System The following are selected transactions for Franklin, Inc., during the month of April: April 20 Sold and shipped on account to Lind Stores merchandise for $13,400, with terms of 2/10, n/30. April 27 Lind Stores returned defective merchandise billed at $1,100 on April 20. April 29 Received from Lind Stores a check for full settlement of the April 20 transaction.

Answer 1

Journal Entries
Sr. No.	Date	Account Title and explanation	Debit	Credit
1	April, 20	Lind Stores	$13,400
		To Sales		$13,400
		(To Record the sales of material on credit)
		Sales Return & Allowance	$1,100
2	April, 27	To Lind Stores		$1,100
		(To record the sales return from Lind Stores)
3	April, 29	Cash ($ 13,400 - $ 1,100) X 98%	$12,054
		Discount on Sales ($12,300 X 2%)	$246
		To Lind Stores		$12,300
		(To Record the receipt and full settlement of Lind stores)