Q21E
Question
Journalize the following sales transactions for Antique Mall. Explanations are not required. The company estimates sales returns at the end of each month.
Jan. 4 Sold \(16,000 of antiques on the account; credit terms are n/30. The cost of goods is \)8,000.
8 Received a \(300 sales return on damaged goods from the customer. The cost of goods damaged is \)150.
13 Antique Mall received payment from the customer on the amount due from Jan. 4, less the return.
20 Sold \(4,900 of antiques on the account; credit terms are 1/10, n/45, FOB destination. The cost of goods is \)2,450.
20 Antique Mall paid $70 on freight out.
29 Received payment from the customer on the amount due from Jan. 20, less the discount.
Step-by-Step Solution
VerifiedThe total of debits and credits is $52,421.
In accounting, sales transactions refer to the events that take the goods and services out from the business concern against generating an asset, i.e., cash or accounts receivable. Sales are the primary source of generating revenues for the businesses.
Date | Accounts and Explanation | Debit ($) | Credit ($) |
Jan 4 | Accounts receivable | 16,000 |
|
| Sales revenue |
| 16,000 |
Jan 4 | Cost of goods sold | 8,000 |
|
| Merchandise inventory |
| 8,000 |
Jan 8 | Sales return | 300 |
|
| Accounts receivable |
| 300 |
Jan 8 | Merchandise inventory | 150 |
|
| Cost of goods sold |
| 150 |
Jan 13 | Cash (16000-300) | 15,700 |
|
| Accounts receivable |
| 15,700 |
Jan 20 | Accounts receivable | 4,900 |
|
| Sales revenue |
| 4,900 |
Jan 20 | Cost of goods sold | 2,450 |
|
| Merchandise inventory |
| 2,450 |
Jan 20 | Delivery expense | 70 |
|
| Cash |
| 70 |
Jan 29 | Cash (4900-1%*4900) | 4,851 |
|
| Accounts receivable |
| 4,851 |