Question

Journalize the following transactions assuming the perpetual inventory system:

July 3 Sold merchandise on account for $3,750 terms.
The cost of the goods sold was $2,000. July 5 Issued credit memo for $1,050 for merchandise returned from sale on July 3. The cost of the merchandise returned was $610. July 12 Received check for the amount due for sale on July 3 less return on July 5. July 17 Sold merchandise for $7,000 plus 6% sales tax to cash customers. The cost of the goods sold was $3,830.

Answer 1

Please see the Journal entries below.

Step-by-step explanation:

July 3

Debit: Accounts Receivables $3,750

Debit: Cost of Goods Sold $2,000

Credit: Sales Revenue $3,750

Credit: Inventory $2,000

To record sales on Account.

July 5:

Debit: Sales Revenue $1,050

Debit: Inventory $610

Credit: Cost of Goods Sold $610

Credit: Accounts Receivables $1,050

To record credit memo.

July 12

Debit: Cash ($3,750 - $1,050) $2,700

Credit: Accounts Receivables $2,700

To record payment of sales.

July 17

Debit: Accounts Receivables $7,420

Debit: Cost of Goods Sold $3,830

Credit: Sales Revenue $7,000

Credit: Sales Tax Payable $420

Credit: Inventory $3,830

To record sales and cost of goods sold.

Answer 2

General Journal

Perpetual Inventory system

Date Particulars Debit Credit

July 3 Account Receivable $3,750

Sales $3,750

Sold merchandise on account for $3,750 terms.

Cost of Goods Sold $ 2000

Merchandise Inventory $2000

The cost of the goods sold was $2,000.

July 5 Sales Returns $1,050

Account Receivable $1,050

Issued credit memo for $1,050 for merchandise returned from sale on July 3.

Merchandise Inventory $610

Cost of Goods Sold $ 610

The cost of the merchandise returned was $610.

July 12 Bank (cash) $2700

Account Receivable $2700

Received check for the amount due for sale on July 3 less return on July 5. ($3,750- $1,050 )=$2700

July 17 Cash $ 7420

Sales $ 7420

Sold merchandise for $7,000 plus 6% sales tax to cash customers. As sales tax is added to the sales a combined entry is made . ( 6%* 7000= $ 420)

Cost of Goods Sold $ 3830

Merchandise Inventory $3830

The cost of the goods sold was $3,830.