Answer:
General Journal
Perpetual Inventory system
Date Particulars Debit Credit
July 3 Account Receivable $3,750
Sales $3,750
Sold merchandise on account for $3,750 terms.
Cost of Goods Sold $ 2000
Merchandise Inventory $2000
The cost of the goods sold was $2,000.
July 5 Sales Returns $1,050
Account Receivable $1,050
Issued credit memo for $1,050 for merchandise returned from sale on July 3.
Merchandise Inventory $610
Cost of Goods Sold $ 610
The cost of the merchandise returned was $610.
July 12 Bank (cash) $2700
Account Receivable $2700
Received check for the amount due for sale on July 3 less return on July 5. ($3,750- $1,050 )=$2700
July 17 Cash $ 7420
Sales $ 7420
Sold merchandise for $7,000 plus 6% sales tax to cash customers. As sales tax is added to the sales a combined entry is made . ( 6%* 7000= $ 420)
Cost of Goods Sold $ 3830
Merchandise Inventory $3830
The cost of the goods sold was $3,830.
Answer:
Please see the Journal entries below.
Explanation:
July 3
Debit: Accounts Receivables $3,750
Debit: Cost of Goods Sold $2,000
Credit: Sales Revenue $3,750
Credit: Inventory $2,000
To record sales on Account.
July 5:
Debit: Sales Revenue $1,050
Debit: Inventory $610
Credit: Cost of Goods Sold $610
Credit: Accounts Receivables $1,050
To record credit memo.
July 12
Debit: Cash ($3,750 - $1,050) $2,700
Credit: Accounts Receivables $2,700
To record payment of sales.
July 17
Debit: Accounts Receivables $7,420
Debit: Cost of Goods Sold $3,830
Credit: Sales Revenue $7,000
Credit: Sales Tax Payable $420
Credit: Inventory $3,830
To record sales and cost of goods sold.
