Interior Wholesale uses a perpetual inventory system. Journalize the following sales transactions for Interior Wholesale. Explanations are not required. Jan. 4: Sold $12,000 of furniture on account, credit terms are 1/15, n/30, to Amesbury Furniture Store. Cost of goods is $6,000. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step. Date Jan. 4 Transactions Jan. 4 Jan. 8 Jan. 13 Jan. 20 Jan. 20 Jan. 25 Accounts Debit Sold $12,000 of furniture on account, credit terms are 1/15, n/30, to Amesbury Furniture Store. Cost of goods is $6,000. Received a $300 sales return on damaged goods from Amesbury Furniture Store. Cost of goods damaged is $150. Interior Wholesale received payment from Amesbury Furniture Store on the amount due from Jan. 4, less the return and discount. Sold $4,400 of furniture on account, credit terms are 1/10, n/45, FOB destination, to Springfield Furniture. Cost of goods is $2,200. Interior Wholesale paid $90 on freight out. Interior Wholesale negotiated a $400 allowance on the goods sold on Jan. 20 to Springfield Furniture. Jan. 29 Received payment from Springfield Furniture on the amount due from Jan. 20, less the allowance and discount. Credit
Interior Wholesale uses a perpetual inventory system. Journalize the following sales transactions for Interior Wholesale. Explanations are not required. Jan. 4: Sold $12,000 of furniture on account, credit terms are 1/15, n/30, to Amesbury Furniture Store. Cost of goods is $6,000. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step. Date Jan. 4 Transactions Jan. 4 Jan. 8 Jan. 13 Jan. 20 Jan. 20 Jan. 25 Accounts Debit Sold $12,000 of furniture on account, credit terms are 1/15, n/30, to Amesbury Furniture Store. Cost of goods is $6,000. Received a $300 sales return on damaged goods from Amesbury Furniture Store. Cost of goods damaged is $150. Interior Wholesale received payment from Amesbury Furniture Store on the amount due from Jan. 4, less the return and discount. Sold $4,400 of furniture on account, credit terms are 1/10, n/45, FOB destination, to Springfield Furniture. Cost of goods is $2,200. Interior Wholesale paid $90 on freight out. Interior Wholesale negotiated a $400 allowance on the goods sold on Jan. 20 to Springfield Furniture. Jan. 29 Received payment from Springfield Furniture on the amount due from Jan. 20, less the allowance and discount. Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Interior Wholesale uses a perpetual inventory system. Journalize the following
sales transactions for Interior Wholesale. Explanations are not required.
Jan. 4: Sold $12,000 of furniture on account, credit terms are 1/15, n/30, to
Amesbury Furniture Store. Cost of goods is $6,000. Begin by preparing the
entry to journalize the sale portion of the transaction. Do not record the
expense related to the sale. We will do that in the following step.
Date
Jan. 4
Transactions
Jan. 4
Jan. 8
Jan. 13
Jan. 20
Accounts
Debit
Sold $12,000 of furniture on account, credit terms are 1/15, n/30, to
Amesbury Furniture Store. Cost of goods is $6,000.
Received a $300 sales return on damaged goods from
Amesbury Furniture Store. Cost of goods damaged is $150.
Interior Wholesale received payment from Amesbury Furniture Store on
the amount due from Jan. 4, less the return and discount.
Sold $4,400 of furniture on account, credit terms are 1/10, n/45,
FOB destination, to Springfield Furniture. Cost of goods is $2,200.
Interior Wholesale paid $90 on freight out.
Jan. 20
Jan. 25 Interior Wholesale negotiated a $400 allowance on the goods sold on
Jan. 20 to Springfield Furniture.
Jan. 29 Received payment from Springfield Furniture on the amount due from
Jan. 20, less the allowance and discount.
Credit
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