Question

Journalize the following merchandise transactions.

Mar.
1 Sold merchandise on account, $75,650 with terms 2/10, n/30. The cost of the merchandise sold was $44,450.
9 Received payment less the discount.
13 Issued a $2,700 credit memo for damaged merchandise. The customer agreed to keep the merchandise.

Answer 1

Journal Entries:

March 1: Debit Accounts receivable $75,650

Credit Sales revenue $75,650

To record the sale of goods on account.

Debit Cost of goods sold $44,450

Credit Inventory $44,450

To record the cost of goods sold.

March 9: Debit Cash $74,137

Debit Cash discounts $1,513

Credit Accounts receivable $75,650

To record the receipt of payment less discount.

March 13: Debit Sales Allowance $2,700

Credit Accounts receivable $2,700

To record the credit memo for damaged goods.

Step-by-step explanation:

a) Data and Analysis:

March 1: Accounts receivable $75,650 Sales revenue $75,650

Cost of goods sold $44,450 Inventory $44,450

March 9: Cash $74,137 Cash discounts $1,513 Accounts receivable $75,650

March 13 Sales Allowance $2,700 Accounts receivable $2,700