Question

Journalize the following merchandise transactions. the company uses the perpetual inventory system. question content area a. sold merchandise on account, $14,600 with terms 2/10, net 30. the cost of the goods sold was $9,490. if an amount box does not require an entry, leave it blank. blank blank question content area b. received payment within the discount period. if an amount box does not require an entry, leave it blank.

Answer 1

To journalize the merchandise transactions, you need to record the sale of merchandise on account and the receipt of payment within the discount period.

Step-by-step explanation:

In order to journalize the given merchandise transactions, we need to record the sale of merchandise on account and the receipt of payment within the discount period.

a. To record the sale of merchandise on account, we need to debit Accounts Receivable for $14,600 and credit Sales for $14,600. The cost of goods sold is recorded by debiting Cost of Goods Sold for $9,490 and crediting Inventory for $9,490.

b. To record the receipt of payment within the discount period, we need to debit Cash for the amount received after deducting the discount ($14,600 - $14,600 x 2% = $14,332) and credit Accounts Receivable for $14,600.