CHART OF ACCOUNTS General Ledger ASSETS110Cash120Accounts Receivable125Notes Receivable130Inventory131Estimated Returns Inventory140Supplies142Prepaid Insurance180Land190Equipment191Accumulated Depreciation LIABILITIES210Accounts Payable216Salaries Payable221Sales Tax Payable222Customers Refunds Payable231Unearned Rent241Notes Payable EQUITY310Common Stock311Retained Earnings312Dividends REVENUE410Sales EXPENSES510Cost of Goods Sold521Delivery Expense522Advertising Expense523Depreciation Expense526Salaries Expense531Rent Expense533Insurance Expense534Supplies Expense536Credit Card Expense560Miscellaneous Expense710Interest ExpenseBased on the information below:a.Seller sold merchandise on account to the buyer, $4,750, terms 2/10, net 30, FOB shipping point on December 21. The cost of the merchandise is $2,850. The seller prepays the freight of $75.b.Buyer returns $700 of merchandise as defective on December 28. The cost of the merchandise is $420.c.Buyer pays within the discount period on December 31. Required: Journalize the entries for the Seller and the Buyer. Both use a perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles. If no entry is required, simply skip to the next transaction.Journalize the transactions . Refer to the Chart of Accounts for exact wording of account titles. If no entry is required, simply skip to the next transaction. SellerPAGE 1 JOURNALACCOUNTING EQUATION DATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1 2 3 4 5 6 7 8 9 10 11 12 BuyerPAGE 1 JOURNALACCOUNTING EQUATION DATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1 2 3 4 5 6

The perpetual inventory system records the sales and cost of goods sold as and when they are…

Answered: Based on the information below: a.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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CHART OF ACCOUNTS

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
125	Notes Receivable
130	Inventory
131	Estimated Returns Inventory
140	Supplies
142	Prepaid Insurance
180	Land
190	Equipment
191	Accumulated Depreciation

	LIABILITIES
210	Accounts Payable
216	Salaries Payable
221	Sales Tax Payable
222	Customers Refunds Payable
231	Unearned Rent
241	Notes Payable

	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends

	REVENUE
410	Sales

	EXPENSES
510	Cost of Goods Sold
521	Delivery Expense
522	Advertising Expense
523	Depreciation Expense
526	Salaries Expense
531	Rent Expense
533	Insurance Expense
534	Supplies Expense
536	Credit Card Expense
560	Miscellaneous Expense
710	Interest Expense

Based on the information below:

a.	Seller sold merchandise on account to the buyer, $4,750, terms 2/10, net 30, FOB shipping point on December 21. The cost of the merchandise is $2,850. The seller prepays the freight of $75.
b.	Buyer returns $700 of merchandise as defective on December 28. The cost of the merchandise is $420.
c.	Buyer pays within the discount period on December 31.

Required:

Journalize the entries for the Seller and the Buyer. Both use a perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles. If no entry is required, simply skip to the next transaction.

Journalize the transactions . Refer to the Chart of Accounts for exact wording of account titles. If no entry is required, simply skip to the next transaction.

Seller

PAGE 1

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6
7
8
9
10
11
12

Buyer

PAGE 1

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6

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