Question

Journalize each of the following transactions assuming a perpetual inventory system. April 5 Sold merchandise to a customer for $7,500; terms 2/10, n/30 (cost of sales $4,780). 7 Made a cash sale of $5,800 of merchandise to a customer today (cost of sales $3,760). 8 Sold merchandise for $13,100; terms 2/10, n/30 (cost of sales $8,140). 15 Collected the amount owing from the credit customer of April 5. May 4 The customer of April 8 paid the balance owing.

Answer 1

Journal entries are made for each transaction, including sales on account, cash sales, and collections, affecting accounts receivable, sales revenue, inventory, and cost of goods sold. Payments received are recorded, taking into account any sales discounts.

Step-by-step explanation:

Journalizing Transactions with Perpetual Inventory

For the transactions presented, we would make the following journal entries:

April 5: Sold merchandise on account.

• Debit Accounts Receivable $7,500
• Credit Sales Revenue $7,500
• Debit Cost of Goods Sold $4,780
• Credit Inventory $4,780

April 7: Made a cash sale.

• Debit Cash $5,800
• Credit Sales Revenue $5,800
• Debit Cost of Goods Sold $3,760
• Credit Inventory $3,760

April 8: Sold merchandise on account.

• Debit Accounts Receivable $13,100
• Credit Sales Revenue $13,100
• Debit Cost of Goods Sold $8,140
• Credit Inventory $8,140

April 15: Collected on account within discount period.

• Debit Cash $7,350 ($7,500 - $150 discount)
• Debit Sales Discounts $150
• Credit Accounts Receivable $7,500

May 4: Received payment from customer without the discount.

• Debit Cash $13,100
• Credit Accounts Receivable $13,100

Each transaction is recorded separately, affecting the relevant accounts: accounts receivable, sales revenue, inventory, and cost of goods sold.