Skidmore Music Company had the following transactions in March: Sold instruments to customers for $16,300; received $11,200 in cash and the rest on account. The cost of the instruments was $8,700. Purchased $4,300 of new instruments inventory; paid $1,600 in cash and owed the rest on account. Paid $610 in wages to employees who worked during the month. Received $4,200 from customers as deposits on orders of new instruments to be sold to the customers in April. Received a $270 bill for March utilities that will be paid in April.

Question

Preston Watson

Business

2 August, 17:14

Skidmore Music Company had the following transactions in March: Sold instruments to customers for $16,300; received $11,200 in cash and the rest on account. The cost of the instruments was $8,700. Purchased $4,300 of new instruments inventory; paid $1,600 in cash and owed the rest on account. Paid $610 in wages to employees who worked during the month. Received $4,200 from customers as deposits on orders of new instruments to be sold to the customers in April. Received a $270 bill for March utilities that will be paid in April.

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Semaj Ferrell · Answer 1

1. a) Dr Account receivable 16300

Cr Sales revenue 16300

b) Dr Cash 11200

Cr Account receivable 11200

2. Dr Inventory 4300

Cr Cash 1600

Cr Accounts payable 2700

3. Dr Wages expense 610

Cr Cash 610

4. Dr Cash 4200

Cr Advance from customer 4200

5. Dr utilities expense 270

Cr Utilities payable 270.