BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

Record the following transactions for a perpetual inventory system in general journal form.

  1. a. Sold merchandise on account to Southridge Manufacturing, Inc., invoice no. 6910, $1,815.24. The cost of merchandise was $1,320.
  2. b. Issued credit memorandum no. 56 to Southridge Manufacturing, Inc., for merchandise returned, $622. The cost of the merchandise was $485.
  3. c. Bought merchandise on account from Michal’s Inc., invoice no. 1685, $850; terms 1/10, n/30; dated April 14; FOB Dallas, freight prepaid and added to the invoice, $65.00 (total $915).
  4. d. Received credit memorandum no. 219 from Michal’s Inc. for merchandise returned, $210.

To determine

Prepare journal entry to record the given transaction using perpetual inventory system.

Explanation

Merchandise Inventory:

Merchandise is the stock of goods bought by a wholesaler, or a retailer, or a trader, to be sold within a year. Merchandise Inventory is a current asset account which includes all the costs incurred to acquire merchandise, and process it further for sale.

Serial number Account Titles and explanation Post.Ref Debit ($) Credit ($)
a. Accounts receivable   1,815.24  
      Sales     1,815.24
  (To record the sale of merchandise to Company S, invoice no:6910)      
         
  Cost of goods sold   1,320.00  
      Merchandise inventory     1,320.00
  (To record the cost of  merchandise sold to Company S)      
         
b. Sales return and allowance   622.00  
       Accounts receivable, Company S     622...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Should an economic model describe reality exactly?

Principles of Macroeconomics (MindTap Course List)

Use a production possibilities frontier to describe the idea of efficiency.

Principles of Microeconomics (MindTap Course List)

RECEIVABLES INVESTMENT McDowell Industries sells on terms of 3,10, net 30. Total sales for the year are 912,500...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

How does a cost-efficient capital market help reduce the prices of goods and services?

Fundamentals of Financial Management (MindTap Course List)