AB-4SE - Horngren'S Financial And Managerial Accounting

Question

Recording transactions in a sales journal

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Jun. 1 Sold merchandise inventory on account to Fran Jack, \(1,220. Cost of goods, \)980. Invoice no. 101.

8 Sold merchandise inventory on account to Ireland Frank, \(2,025. Cost of goods, \)1,640. Invoice no. 102.

13 Sold merchandise inventory on account to Jake Thompson, \(420. Cost of goods, \)210. Invoice no. 103.

28 Sold merchandise inventory on account to Gabe West, \(820. Cost of goods, \)620. Invoice no. 104.

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Use the following sales journal to record the preceding transactions. All credit sales are terms of n/30.

				Sales journal
Date	Invoice No.	Customer Account Debited	Post. Ref.	Accounts Receivables Dr Sales Revenue Cr	Cost of Goods Sold Dr. Merchandise Inventory Cr.

Step-by-Step Solution

Answer

Total sales revenue on account: $4,485

Sales Journal

Sales journal is a special purpose journal that is used to record merchandise sales on account. The sales for any other asset on account are not recorded under this journal. The sales of merchandise in cash are also not recorded in this journal.

Transaction recording in the sales journal

				Sales journal
Date	Invoice No.	Customer Account Debited	Post. Ref.	Accounts Receivables Dr Sales Revenue Cr	Cost of Goods Sold Dr. Merchandise Inventory Cr.
June 1	101	Frank Jack		$1,220	$980
8	102	Ireland Frank		$2,025	$1,640
13	103	Jake Thompson		$420	$210
28	104	Gabe West		$820	$620