Question

Record journal entries for laker company’s sales and purchases transactions. Assume for this assignment that the company uses a perpetual inventory system and fifo. All sales and purchases are made on account, and no discounts are offered.

Answer 1

The journal entry depicts the transaction that has taken place in the company.

How to depict the journal entry?

The journal entry will be:

10th Jan

Credit Sales $3795

Debit Account receivable $3795

(To record sales of 165 units at $23.

10th Jan

Credit Cost of goods sold $2310

Debit Merchandise inventory $2310

(To record cost for goods sold 165 units at $14 per unit).

20 January

Credit Inventory $2080

Debit Account payable $2080

(To record purchase of inventory 160 units at $13)

25 January

Credit Account receivable $4370.

Debit Sales $4370

(To record sales of 190 units at $23).

30 January

Credit Inventory $3905

Debit Account payable $3905

(To record purchase of 355 units at $11)

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