Chen Company uses a two-column sales journal and a six-column cash receipts journal. For each of the following transactions, indicate (a) the journal, and (b) the columns in the journal that should be used in recording each transaction. (Enter answers in alphabetical order for the "Dr." column.)             (b) Columns in the Journal         Transactions   (a) Journal   Dr.   Cr.   Description 1.   Received cash from sale of merchandise.                                                              Cash PaymentsSalesCash ReceiptsPurchasesGeneral                                                              Sales RevenueInventoryOther AccountsAccounts PayableAccounts ReceivableSales DiscountsSales ExpenseCost of Goods SoldCash                                                              InventoryOther AccountsCashCost of Goods SoldSales ExpenseSales DiscountsAccounts PayableSales RevenueAccounts Receivable   (To record cash received)                                                                        Accounts ReceivableCashOther AccountsAccounts PayableCost of Goods SoldInventorySales DiscountsSales RevenueSales Expense                                                              Sales RevenueCost of Goods SoldOther AccountsAccounts ReceivableSales DiscountsSales ExpenseCashInventoryAccounts Payable   (To record sale of merchandise) 2.   Sold merchandise on credit.                                                              GeneralPurchasesCash PaymentsSalesCash Receipts                                                              Sales DiscountsSales ExpenseInventoryCashSales RevenueCost of Goods SoldOther AccountsAccounts ReceivableAccounts Payable                                                              Sales DiscountsOther AccountsAccounts PayableCashInventoryAccounts ReceivableSales ExpenseCost of Goods SoldSales Revenue   (To record sale of merchandise on credit)                                                                        Sales DiscountsSales ExpenseCashAccounts ReceivableInventoryOther AccountsAccounts PayableSales RevenueCost of Goods Sold                                                              InventoryAccounts ReceivableSales ExpenseSales RevenueSales DiscountsOther AccountsAccounts PayableCashCost of Goods Sold   (To record sale of merchandise) 3.   Received a check from customer in payment of an invoice less a 2% discount.                                                              Cash ReceiptsPurchasesGeneralCash PaymentsSales                                                              Cost of Goods SoldOther AccountsAccounts ReceivableSales RevenueInventoryCashSales ExpenseSales DiscountsAccounts Payable                                                              Sales ExpenseCashOther AccountsSales RevenueAccounts ReceivableInventorySales DiscountsAccounts PayableCost of Goods Sold                                                                            Sales DiscountsAccounts PayableSales ExpenseAccounts ReceivableOther AccountsCost of Goods SoldInventoryCashSales Revenue                                                              Sales ExpenseInventoryCost of Goods SoldOther AccountsAccounts ReceivableSales DiscountsAccounts PayableSales RevenueCash     4.   Owner made an investment in the business.                                                              PurchasesGeneralCash ReceiptsSalesCash Payments                                                              Other AccountsSales DiscountsCashAccounts ReceivableSales ExpenseAccounts PayableInventoryCost of Goods SoldSales Revenue                                                              Sales DiscountsOther AccountsSales ExpenseAccounts ReceivableCost of Goods SoldSales RevenueCashAccounts PayableInventory

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Chen Company uses a two-column sales journal and a six-column cash receipts journal.

For each of the following transactions, indicate (a) the journal, and (b) the columns in the journal that should be used in recording each transaction. (Enter answers in alphabetical order for the "Dr." column.)

            (b)
Columns in the Journal
   
    Transactions   (a)
Journal
  Dr.   Cr.   Description
1.   Received cash from sale of merchandise.                                                              Cash PaymentsSalesCash ReceiptsPurchasesGeneral                                                              Sales RevenueInventoryOther AccountsAccounts PayableAccounts ReceivableSales DiscountsSales ExpenseCost of Goods SoldCash                                                              InventoryOther AccountsCashCost of Goods SoldSales ExpenseSales DiscountsAccounts PayableSales RevenueAccounts Receivable   (To record cash received)
                                                                       Accounts ReceivableCashOther AccountsAccounts PayableCost of Goods SoldInventorySales DiscountsSales RevenueSales Expense                                                              Sales RevenueCost of Goods SoldOther AccountsAccounts ReceivableSales DiscountsSales ExpenseCashInventoryAccounts Payable   (To record sale of merchandise)
2.   Sold merchandise on credit.                                                              GeneralPurchasesCash PaymentsSalesCash Receipts                                                              Sales DiscountsSales ExpenseInventoryCashSales RevenueCost of Goods SoldOther AccountsAccounts ReceivableAccounts Payable                                                              Sales DiscountsOther AccountsAccounts PayableCashInventoryAccounts ReceivableSales ExpenseCost of Goods SoldSales Revenue   (To record sale of merchandise on credit)
                                                                       Sales DiscountsSales ExpenseCashAccounts ReceivableInventoryOther AccountsAccounts PayableSales RevenueCost of Goods Sold                                                              InventoryAccounts ReceivableSales ExpenseSales RevenueSales DiscountsOther AccountsAccounts PayableCashCost of Goods Sold   (To record sale of merchandise)
3.   Received a check from customer in payment of an invoice less a 2% discount.                                                              Cash ReceiptsPurchasesGeneralCash PaymentsSales                                                              Cost of Goods SoldOther AccountsAccounts ReceivableSales RevenueInventoryCashSales ExpenseSales DiscountsAccounts Payable                                                              Sales ExpenseCashOther AccountsSales RevenueAccounts ReceivableInventorySales DiscountsAccounts PayableCost of Goods Sold    
                                                                       Sales DiscountsAccounts PayableSales ExpenseAccounts ReceivableOther AccountsCost of Goods SoldInventoryCashSales Revenue                                                              Sales ExpenseInventoryCost of Goods SoldOther AccountsAccounts ReceivableSales DiscountsAccounts PayableSales RevenueCash    
4.   Owner made an investment in the business.                                                              PurchasesGeneralCash ReceiptsSalesCash Payments                                                              Other AccountsSales DiscountsCashAccounts ReceivableSales ExpenseAccounts PayableInventoryCost of Goods SoldSales Revenue                                                              Sales DiscountsOther AccountsSales ExpenseAccounts ReceivableCost of Goods SoldSales RevenueCashAccounts PayableInventory  
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