Q28E
Question
Journalize the following sales transactions for Morris Supply. Explanations are not required.
Mar. 1 Morris Supply sold merchandise inventory for \(3,000. The cost of the inventory was \)1,800. The customer paid cash. Morris Supply was running a promotion, and the customer received a \(150 award at the time of sale that can be used at a future date on any Morris Supply merchandise.
3 Sold \)6,000 of supplies on account. Credit terms are 2/10, n/45, FOB destination. The cost of goods is \(3,600.
10 Received payment from the customer on the amount due from March 3, less the discount.
Apr. 15 The customer used the \)150 award when purchasing merchandise inventory for \(200; the inventory cost was \)120. The customer paid cash.
Step-by-Step Solution
VerifiedThe total of debits and credits is $17,920.
In accounting, journal entries refer to maintaining and recording the financial transactions of a business concern in its books. Journal entries follow the dual aspect concept of accounting and reflect both the debit and credit perspectives of a transaction.
Date | Accounts and Explanation | Debit ($) | Credit ($) |
Mar 1 | Cash | 3,300 |
|
| Sales revenue |
| 3,300 |
Mar 1 | Cost of goods sold | 1,800 |
|
| Merchandise inventory |
| 1,800 |
Mar 1 | Sales allowances | 150 |
|
| Customer |
| 150 |
Mar 3 | Accounts receivable | 6,000 |
|
| Sales |
| 6,000 |
Mar 3 | Cost of goods sold | 3,600 |
|
| Merchandise inventory |
| 3,600 |
Mar 10 | Cash | 5,880 |
|
| Discount (6000*2%) | 120 |
|
| Accounts receivable |
| 6,000 |
Apr 15 | Customer | 200 |
|
| Sales revenue |
| 200 |
Apr 15 | Cost of goods sold | 120 |
|
| Merchandise inventory |
| 120 |
Apr 15 | Cash | 50 |
|
| Customer |
| 50 |