Question

Presented here are selected transactions for the Leiss Company during April. Leiss uses the perpetual inventory system.

April 1 Sold merchandise to Mann Company for $5,500, terms 2/10, n/30. The merchandise sold had a cost of $2,500.

April 2 Purchased merchandise from Wild Corporation for $9,000, terms 1/10, n/30.

April 4 Purchased merchandise from Ryan Company for $1,000, n/30.

April 10 Received payment from Mann Company for purchase of April 1 less appropriate discount.

April 11 Paid Wild Corporation for April 2 purchase.


Journalize the April transactions for Leiss Company.

Answer 1

April 1

J1

Trade Receivable - Mann Company $5,500 (debit)

Revenue $5,500 (credit)

J2

Cost of Goods Sold $2,500 (debit)

Merchandise $2,500 (credit)

April 2

Merchandise $9,000 (debit)

Trade Payable - Wild Corporation $9,000 (credit)

April 4

Merchandise $1,000 (debit)

Trade Payable - Ryan Company $1,000 (credit)

April 10

J1

Discount Allowed $110 (debit)

Trade Receivable - Mann Company $110 (credit)

J2

Cash $5,390 (debit)

Trade Receivable - Mann Company $5,390 (credit)

April 11

Trade Payable - Wild Corporation $9,000 (debit)

Cash $9,000 (credit)

Step-by-step explanation:

Note : Leiss uses the perpetual inventory system

Therefore,

Recognize the Cost of Goods Sold with each sale that is made.