Question

Record transactions using a perpetual system (LO6-5) Gamegirl Inc., has the following transactions during August 6 Sold 70 handheld game devices for $200 each to DS Unlimited on account, terms 1/10, net 60. The cost of August the 70 game devices sold was $180 each. August 10 DS Unlimited returned six 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, In., assuming the company uses a perpetual inventory system. (If no entry is required for transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet 1 2 3 4 Record the sale of inventory on account Note: Enter debits before credits. General journal Credit Date Debit August 06 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 Record the cost of inventory sold Note: Enter debits before credits. Date General journal Debit Credit August 06 Record entry Clear entry View general journal Journal entry worksheet 3 1 2 4 Record DS Unlimited returning six game devices purchased on 6th August since they were defective. Note: Enter debits before credits. General journal Debit Date Credit August 10 Record entry Clear entry View general journal Journal entry worksheet 2 4 Record receipt of full amount due from DS Unlimited. Note: Enter debits before credits. Date General journal Debit Credit August 14 Clear entry View general journal Record entry

Answer 1

GameGirl, Inc.

Journal Entries:

August 6:

Debit Accounts Receivable (DS Unlimited) $14,000

Credit Sales Revenue $14,000

To record the sale of handheld game devices, terms 1/10, net 60.

Debit Cost of Goods Sold $12,600

Credit Inventory $12,600

To record the cost of goods sold.

August 10:

Debit Sales Returns $1,200

Credit Accounts Receivable (DS Unlimited) $1,200

To record the return of six game devices.

Debit Inventory $1,080

Credit Cost of goods sold $1,080

To record the cost of goods returned.

August 14:

Debit Cash Account $12,672

Debit Cash Discount Allowed $128

Credit Accounts Receivable (DS Unlimited) $12,800

To record the receipt on account.

Step-by-step explanation:

Gamegirl records the transactions in its accounting books as they occur. Journal entries identify the accounts to be debited or credited for each transaction.