Question

Journalize the following merchandise transactions.

The company uses the perpetual inventory system. a. Sold merchandise on account, $13,000 with terms 2/10, net 30. The cost of the goods sold was $8,450.

Answer 1

Answer: See explanation

Step-by-step explanation:

The journal entry will be illustrated below:

Dr Account receivable $13000

Cr Sales revenue $13000

(To record sales on account)

Dr Cost if goods sold $8450

Cr Inventory $8450

(To record cost of goods sold)

Dr Cash $12740

Dr Sales discount $260

Cr Account receivable $13000

(To record the payment received on account)

Note that cash discount was calculated as: = 2% × $13000 = $260