Question

Gamegirl Inc., has the following transactions during August. August 6 Sold 72 handheld game devices for $210 each to DS Unlimited on account, terms 2/10, net 60. The cost of the 72 game devices sold, was $190 each. August 10 DS Unlimited returned seven game devices purchased on 6th August since they were defective. August 14 Received full amount due from DS Unlimited.

Required:
Prepare the transactions for GameGirl, Inc., assuming the company uses a perpetual inventory system.

Answer 1

Aug 6

Dr Accounts Receivable $15,120

Cr Sales $15,120

Dr Cost of Goods Sold $13,680

Cr Inventory $13,680

Aug 10

Dr Sales Return $1,470

Cr Accounts Receivable $1,470

Aug 14

Dr Cash $13,513

Dr Sales Discount $137

Cr Accounts Receivable $13,650

Step-by-step explanation:

Preparation of the transactions for GameGirl, Inc., assuming the company uses a perpetual inventory system.

Aug 6 Accounts Receivable $15,120

Sales $15,120

(72*$210)

Dr Cost of Goods Sold $13,680

Cr Inventory $13,680

(72*$190)

Aug 10

Dr Sales Return $1,470

Cr Accounts Receivable $1,470

(7*$210)

Aug 14

Dr Cash $13,513

($13,650-$137)

Dr Sales Discount $137

Cr Accounts Receivable $13,650

Computation of Sales Discount:

Sales $15,120

Less: Sales Return $1,470

Total Sales $13,650

Multiply: Percentage of Discount 1%

Sales Discount $137