Sheffield Depot sells mobile devices and accessories. During September, the following transactions occurred.1.Kenneth Johnson bought a $150 gift card for his uncle Steven Johnson.2.Sold $130 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 $28,000. The unadjusted balance in the Inventory account was $21,000.Prepare the entries to record the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)Sr. No.Account Titles and ExplanationDebitCredit1.enter an account title to record cash received for goods to be provided at a later dateenter a debit amountenter a credit amount enter an account title to record cash received for goods to be provided at a later dateenter a debit amountenter 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 cardenter a debit amountenter a credit amount enter an account title to record the sale of merchandise using a gift cardenter a debit amountenter a credit amount (To record the sale of merchandise using a gift card) 3.enter an account title to adjust inventory to physical countenter a debit amountenter a credit amount enter an account title to adjust inventory to physical countenter a debit amountenter a credit amount (To adjust inventory to physical count)

Gift cards are sold to the customers and the business establishes a liability to supply goods in…

Answered: heffield Depot sells mobile devices and…

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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Sheffield Depot sells mobile devices and accessories. During September, the following transactions occurred.

1.	Kenneth Johnson bought a $150 gift card for his uncle Steven Johnson.
2.	Sold $130 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 $28,000. The unadjusted balance in the Inventory account was $21,000.

Prepare the entries to record the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

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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