Q15SE - Horngren'S Financial And Managerial Accounting

Question

Journalize the following sales transactions for Sanborn Camera Store using the periodic inventory system. Explanations are not required.

Dec. 3, Sanborn sold $41,900 of camera equipment on the account; credit terms are 3/15, n/EOM.

17 Sanborn receives payment from the customer on the amount due to less the discount.

Step-by-Step Solution

Answer

The total of debits and credits is$83,800

Step 1: Definition of Journal Entries

In the accounting process, the recording of financial information in the tabular format by considering the debit and credit aspects is termed journal entries. It is the primary activity of the business concern that helps in drafting further reports. 

Step 2: Preparation of journal entries

Date	Accounts and Explanation	Debit ($)	Credit ($)
Dec 3	Accounts receivable	41,900
	Sales revenue		41,900
Dec 17	Cash	40,643
	Sales discount (41,900*3%)	1,257
	Accounts receivable		41,900