Q5-3TI

Question

Click Computers has the following transactions in July related to the sale of merchandise inventory.

July 12 Sold computers on account for $8,000 to a customer, terms 3/15, n/30. The cost of the computers is $4,800.

26 Received payment from the customer on the balance due.

Journalize the sales transactions for Click Computers assuming the company uses the perpetual inventory system.

Step-by-Step Solution

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Answer

The total debit and credit of the journal are $20,560.

1Meaning of Journal Entries

In accounting, journal entries refer to the tabular presentation of the financial information of a business entity in chronological order. It records both the debit and credit aspects of the transaction simultaneously.

2Preparation of journal entries

Date	Accounts and Explanation	Debit ($)	Credit ($)
July 12	Accounts receivable	8,000
	Cost of goods sold	4,800
	Sales revenue		8,000
	Inventory		4,800
	(To record the sale of computers)
July 26	Cash	7,760
	Accounts receivable		7,760
	(Cash received within the discount period)

Q5-2TI

Q5-4RQ

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