Powell Company began the Year 2 accounting period with $20,000 cash, $60,400 inventory, $48,600 common stock, and $31,800 retained earnings. During Year 2, Powell experienced the following events: Sold merchandise that cost $37,900 for $74,600 on account to Prentise Furniture Store. Delivered the goods to Prentise under terms FOB destination. Freight costs were $310 cash. Received returned goods from Prentise. The goods cost Powell $1,910 and were sold to Prentise for $3,880. Granted Prentise a $1,160 allowance for damaged goods that Prentise agreed to keep. Collected partial payment of $53,300 cash from accounts receivable. Required a. Record the events in general journal format.

Question

Jamison Munoz

Business

18 February, 23:35

Powell Company began the Year 2 accounting period with $20,000 cash, $60,400 inventory, $48,600 common stock, and $31,800 retained earnings. During Year 2, Powell experienced the following events: Sold merchandise that cost $37,900 for $74,600 on account to Prentise Furniture Store. Delivered the goods to Prentise under terms FOB destination. Freight costs were $310 cash. Received returned goods from Prentise. The goods cost Powell $1,910 and were sold to Prentise for $3,880. Granted Prentise a $1,160 allowance for damaged goods that Prentise agreed to keep. Collected partial payment of $53,300 cash from accounts receivable. Required a. Record the events in general journal format.

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Raina Graves · Answer 1

1

Dr Accounts Receivable 74600

Cr Sales Revenue 74600

Dr Cost of Goods Sold 37900

Cr Inventory 37900

2

Dr Freight Out 310

Cr Cash 310

3

Dr Sales Revenue 3880

Cr Accounts Receivable 3880

Dr Inventory 1910

Cr Cost of Goods Sold 1910

4

Dr Sales Revenue 1160

Cr Accounts Receivable 1160

5

Dr Cash 53300

Cr Accounts Receivable A/c 53300