Concord Depot sells mobile devices and accessories. During September, the following transactions occurred. 1. Edward Johnson bought a $130 gift card for his uncle Brian Johnson. 2. Sold $120 of merchandise to Samuel Johnson, who used his gift card for payment. (Omit the entry for cost of goods sold.) 3. Performed a physical count of inventory and determined the correct value of inventory should be $35,000. The unadjusted balance in the Inventory account was $30,000. Prepare the entries to record the transactions.
Concord Depot sells mobile devices and accessories. During September, the following transactions occurred. 1. Edward Johnson bought a $130 gift card for his uncle Brian Johnson. 2. Sold $120 of merchandise to Samuel Johnson, who used his gift card for payment. (Omit the entry for cost of goods sold.) 3. Performed a physical count of inventory and determined the correct value of inventory should be $35,000. The unadjusted balance in the Inventory account was $30,000. Prepare the entries to record the transactions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Concord Depot sells mobile devices and accessories. During September, the following transactions occurred.
1. | Edward Johnson bought a $130 gift card for his uncle Brian Johnson. |
2. | Sold $120 of merchandise to Samuel Johnson, who used his gift card for payment. (Omit the entry for cost of goods sold.) |
3. | Performed a physical count of inventory and determined the correct value of inventory should be $35,000. The unadjusted balance in the Inventory account was $30,000. |
Prepare the entries to record the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record
Sr. No.
|
Account Titles and Explanation
|
Debit
|
Credit
|
---|---|---|---|
1.
|
enter an account title to record cash received for goods to be provided at a later date
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record cash received for goods to be provided at a later date
|
enter a debit amount
|
enter a credit amount
|
|
(To record cash received for goods to be provided at a later date) | |||
2.
|
enter an account title to record the sale of merchandise using a gift card
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record the sale of merchandise using a gift card
|
enter a debit amount
|
enter a credit amount
|
|
(To record the sale of merchandise using a gift card) | |||
3.
|
enter an account title to adjust inventory to physical count
|
enter a debit amount
|
enter a credit amount
|
enter an account title to adjust inventory to physical count
|
enter a debit amount
|
enter a credit amount
|
|
(To adjust inventory to physical count) |
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