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Prepare journal entries to record cash of the following sales transactions of a merchandising company. Show supporting calculations and assume a...
Prepare journal entries to record cash of the following sales transactions of a merchandising company. Show supporting calculations and assume a perpetual inventory system.Apr.1 Sold merchandise for $2,000, granting the customer terms of 2/10,EOM; invoice dated April 1. The cost of the merchandise is $1,400.Apr.4 The customer in the April 1 sale returned merchandise and received credit for $500. The merchandise, which had cost $350, is returned to inventory.Apr.11 Received payment for the amount due from the April 1 sale less the return on April 4.
SOLUTION:Journal EntriesDate Particulars 1-Apr Accounts ReceivableSales(To record sales.) $2,000.00 Cost of goods soldInventory(To record cost of goods sold.) $1,400.00 1-Apr 4-Apr 4-Apr...