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QuestionJournalize the following merchandise transactions. The company uses the perpetual inventory system. a. Sold merchandise on account, $17,300\$ 17,300, with terms n/30n / 30. The cost of the merchandise sold was $12,600\$ 12,600. If an amount box does not require an entry, leave it blank. □\square □\square □\square □\square □\square □\square □\square □\square □\square □\square □\square □\square b. Received payment. If an amount box does not require an entry, leave it blank. □\square □\square □\square □\square □\square □\square

Studdy Solution

STEP 1

1. The company uses the perpetual inventory system.
2. Merchandise is sold on account with terms n/30 n/30 .
3. The cost of goods sold (COGS) needs to be recorded.
4. Payment is received later for the merchandise sold.

STEP 2

1. Record the sale of merchandise on account.
2. Record the cost of goods sold.
3. Record the receipt of payment.

STEP 3

Record the sale of merchandise on account: - Debit Accounts Receivable for the sale amount. - Credit Sales Revenue for the sale amount.
Journal Entry: DateAccount Titles and ExplanationDebitCredita.Accounts Receivable$17,300Sales Revenue$17,300\begin{array}{|c|c|c|c|} \hline \text{Date} & \text{Account Titles and Explanation} & \text{Debit} & \text{Credit} \\ \hline \text{a.} & \text{Accounts Receivable} & \$17,300 & \\ & \text{Sales Revenue} & & \$17,300 \\ \hline \end{array}

STEP 4

Record the cost of goods sold: - Debit Cost of Goods Sold for the cost amount. - Credit Inventory for the cost amount.
Journal Entry: DateAccount Titles and ExplanationDebitCredita.Cost of Goods Sold$12,600Inventory$12,600\begin{array}{|c|c|c|c|} \hline \text{Date} & \text{Account Titles and Explanation} & \text{Debit} & \text{Credit} \\ \hline \text{a.} & \text{Cost of Goods Sold} & \$12,600 & \\ & \text{Inventory} & & \$12,600 \\ \hline \end{array}

STEP 5

Record the receipt of payment: - Debit Cash for the payment amount. - Credit Accounts Receivable for the payment amount.
Journal Entry: DateAccount Titles and ExplanationDebitCreditb.Cash$17,300Accounts Receivable$17,300\begin{array}{|c|c|c|c|} \hline \text{Date} & \text{Account Titles and Explanation} & \text{Debit} & \text{Credit} \\ \hline \text{b.} & \text{Cash} & \$17,300 & \\ & \text{Accounts Receivable} & & \$17,300 \\ \hline \end{array}

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