Get expert advice and community support for your questions on IDNLearn.com. Get the information you need quickly and accurately with our reliable and thorough Q&A platform.
Sagot :
Answer:
Pharoah Warehouse
Journal Entries:
June 1: Debit Inventory $2,490
Credit Accounts Payable (Catlin Publishers) $2,490
To record the purchase of inventory on account, terms 2/10, n/30.
June 3: Debit Accounts Receivable (Garfunkel Bookstore) $1,300
Credit Sales Revenue $1,300
To record the sale of goods on account with usual credit terms.
Debit Cost of Goods Sold $900
Credit Inventory $900
To record the cost of goods sold.
June 6: Debit Accounts Payable (Catlin Publishers) $90
Credit Inventory $90
To record the return of inventory.
June 9: Debit Accounts Payable (Catlin Publishers) $2,400
Credit Cash $2,352
Credit Cash Discount $48
To record the payment on account.
June 15: Debit Cash $1,300
Credit Accounts Receivable (Garfunkel Bookstore) $1,300
To record the cash collection on account.
June 17: Debit Accounts Receivable (Bell Tower) $1,700
Credit Sales Revenue $1,700
To record the sale of goods on account.
Debit Cost of Goods Sold $800
Credit Inventory $800
To record the cost of goods sold.
June 20: Debit Inventory $800
Credit Accounts Payable (Priceless Book Publishers) $800
To record the purchase of goods on account, terms 2/15, n/30.
June 24: Debit Cash $1,666
Debit Cash Discounts $34
Credit Accounts Receivable (Bell Tower) $1,700
To record the collection of cash on account.
June 26: Debit Accounts Payable (Priceless Book Publishers) $800
Credit Cash $784
Credit Cash Discounts $16
To record payment on account.
June 28: Debit Accounts Receivable (General Bookstore) $2,650
Credit Sales Revenue $2,650
To record the sale of goods on account.
Debit Cost of Goods Sold $850
Credit Inventory $850
To record the cost of goods sold.
June 30: Debit Sales Returns $260
Credit Accounts Receivable (General Bookstore) $260
To record sales returns on account.
Debit Inventory $90
Credit Cost of Goods Sold $90
To record the cost of goods returned by a customer.
Explanation:
a) Data and Analysis:
Credit terms to all customers = 2/10, n/30. This means that 2% discount is granted to customers who pay within 10 days. Customers are expected to settle their accounts within 30 days after which, interest is charged on their accounts.
b) June 1: Inventory $2,490 Accounts Payable (Catlin Publishers) $2,490, terms 2/10, n/30.
June 3: Accounts Receivable (Garfunkel Bookstore) $1,300 Sales Revenue $1,300
Cost of Goods Sold $900 Inventory $900
June 6: Accounts Payable (Catlin Publishers) $90 Inventory $90
June 9: Accounts Payable (Catlin Publishers) $2,400 Cash $2,352 Cash Discount $48
June 15: Cash $1,300 Accounts Receivable (Garfunkel Bookstore) $1,300
June 17: Accounts Receivable (Bell Tower) $1,700 Sales Revenue $1,700
Cost of Goods Sold $800 Inventory $800
June 20: Inventory $800 Accounts Payable (Priceless Book Publishers) $800, terms 2/15, n/30.
June 24: Cash $1,666 Cash Discounts $34 Accounts Receivable (Bell Tower) $1,700
June 26: Accounts Payable (Priceless Book Publishers) $800 Cash $784 Cash Discounts $16
June 28: Accounts Receivable (General Bookstore) $2,650 Sales Revenue $2,650
Cost of Goods Sold $850 Inventory $850
June 30: Sales Returns $260 Accounts Receivable (General Bookstore) $260
Inventory $90 Cost of Goods Sold $90
Thank you for contributing to our discussion. Don't forget to check back for new answers. Keep asking, answering, and sharing useful information. For trustworthy answers, rely on IDNLearn.com. Thanks for visiting, and we look forward to assisting you again.
