ag Store?earning Objective 3S5-4 Journalizing sales transactionsJournalize the following sales transactions for Salem Sportswear. Explanations are notrequired. The company estimates sales returns at the end of each month.Jul. 1Salem sold $20,000 of men's sportswear for cash. Cost of goods sold is$10,000.Salem sold $62,000 of women's sportswear on account, credit terms are3/10, n/30. Cost of goods is $31,000.3Salem received a $4,500 sales return on damaged goods from thecustomer on July 1. Cost of goods damaged is $2,250.Salem receives payment from the customer on the amount due, lessdiscount.10

Answered: S5-4 Journalizing sales transactions…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 3SEA: ALLOCATING OPERATING EXPENSERELATIVE NET SALES Hayley Doll owns a car stereo store. She has divided...

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ag Store?
earning Objective 3
S5-4 Journalizing sales transactions
Journalize the following sales transactions for Salem Sportswear. Explanations are not
required. The company estimates sales returns at the end of each month.
Jul. 1
Salem sold $20,000 of men's sportswear for cash. Cost of goods sold is
$10,000.
Salem sold $62,000 of women's sportswear on account, credit terms are
3/10, n/30. Cost of goods is $31,000.
3
Salem received a $4,500 sales return on damaged goods from the
customer on July 1. Cost of goods damaged is $2,250.
Salem receives payment from the customer on the amount due, less
discount.
10

Expert Solution

Step 1

Journal entry: The business-related transactions are recorded in the books by the way of journal entries. The items related to the transactions are debited and credited while recording the journal entry according to the double-entry system. The balance of the debit side matches with the credit side under the double-entry system.

Periodic inventory system: In the periodic inventory system updates and records the inventory transactions either at the end of the month/ quarter/ year.

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