Question

Journalize the following merchandise transactions. Refer to the Chart of Accounts for exact wording of account titles.Jan. 1 Sold merchandise on account, $18,000 with terms 1/10, n/30, using the net method under a perpetual inventory system. The cost of the goods sold was $10,800.6 Received payment less the discount.7 Refunded $600 to customer for defective merchandise that was not returned.

Answer 1

Step-by-step explanation:

The journal entries are shown below:

1. Account receivable A/c Dr $17,820

To Sales revenue A/c $17,820

(Being the goods sold on credit)

The computation is shown below:

= $18,000 - $18,000 × 1%

= $18,000 - $180

= $17,820

2. Cost of goods sold A/c Dr $10,800

To Merchandise inventory A/c $10,800

(Being goods sold on cost)

3. Cash A/c Dr $17,820

To Account receivable A/c $17,820

(Being cash is received)

4. Customer refund payable A/c Dr $600

To Cash A/c $600

(Being the cash is refunded)