Saturday, March 22, 2014

PE 6-2B Sales transactions

Journalize the following merchandise transactions:
a. Sold merchandise on account, $60,000 with terms 1/10, n/30. The cost of the merchandise sold was $40,000.
b. Received payment less the discount.

Answer:
a. Accounts Receivable ................................................... 60,000
                   Sales ........................................................................ 60,000
    Cost of Merchandise Sold........................................... 40,000
                     Merchandise Inventory........................................... 40,000

b. Cash ....................................................................59,400
    Sales Discounts ........................................................... 600
                       Accounts Receivable.............................................. 60,000

1 comment:

  1. I love this blog you are helping me get through accounting 1, because it was hard for me to understand the theories without sample problems. I would love it if you continued.

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