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1 August, 01:12

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.

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  1. 1 August, 01:39
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    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)
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