QS 4-13 (Algo) Recording sales, returns, and allowances; no discounts LO P2 Prepare journal entries to record each of the following sales transactions of TFC Merchandising. TFC uses a perpetual inventory system and the gross method. May 1 Sold merchandise for $640, with credit terms n/60. The cost of the merchandise is $420. May 9 The customer discovers slight defects in some units. TFC gives a price reduction (allowance) and credits the customer's accounts receivable for $44 to compensate for the defects. June 4 The customer in the May 1 sale returned $85 of merchandise for full credit. The merchandise, which had cost $54, is returned to inventory. June 30 Received payment for the amount due from the May 1 sale less the May 9 allowance and June 4 return. View transaction list Sold merchandise for $640, with credit terms n/60. → The cost of the merchandise is $420. 3 The customer discovers slight defects in some units. TFC gives a price reduction (allowance) and credits the customer's accounts receivable for $44 to compensate for the defects. 4 The customer in the May 1 sale returned $85 of merchandise for full credit. 5 The merchandise, which had cost $54, is returned to inventory. Note : = journal entry has been entered Record entry Clear entry X Credit 640 View general journal >
QS 4-13 (Algo) Recording sales, returns, and allowances; no discounts LO P2 Prepare journal entries to record each of the following sales transactions of TFC Merchandising. TFC uses a perpetual inventory system and the gross method. May 1 Sold merchandise for $640, with credit terms n/60. The cost of the merchandise is $420. May 9 The customer discovers slight defects in some units. TFC gives a price reduction (allowance) and credits the customer's accounts receivable for $44 to compensate for the defects. June 4 The customer in the May 1 sale returned $85 of merchandise for full credit. The merchandise, which had cost $54, is returned to inventory. June 30 Received payment for the amount due from the May 1 sale less the May 9 allowance and June 4 return. View transaction list Sold merchandise for $640, with credit terms n/60. → The cost of the merchandise is $420. 3 The customer discovers slight defects in some units. TFC gives a price reduction (allowance) and credits the customer's accounts receivable for $44 to compensate for the defects. 4 The customer in the May 1 sale returned $85 of merchandise for full credit. 5 The merchandise, which had cost $54, is returned to inventory. Note : = journal entry has been entered Record entry Clear entry X Credit 640 View general journal >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:QS 4-13 (Algo) Recording sales, returns, and allowances; no discounts LO P2
Prepare journal entries to record each of the following sales transactions of TFC Merchandising. TFC uses a perpetual
inventory system and the gross method.
May 1 Sold merchandise for $640, with credit terms n/60. The cost of the merchandise is $420.
May 9 The customer discovers slight defects in some units. TFC gives a price reduction (allowance) and credits the
customer's accounts receivable for $44 to compensate for the defects.
June 4
The customer in the May 1 sale returned $85 of merchandise for full credit. The merchandise, which had cost
$54, is returned to inventory.
June 30 Received payment for the amount due from the May 1 sale less the May 9 allowance and June 4 return.
View transaction list
Sold merchandise for $640, with credit terms n/60.
The cost of the merchandise is $420.
3 The customer discovers slight defects in some units. TFC
gives a price reduction (allowance) and credits the
customer's accounts receivable for $44 to compensate for
the defects.
4 The customer in the May 1 sale returned $85 of
merchandise for full credit.
5 The merchandise, which had cost $54, is returned to
inventory.
Note:
= journal entry has been entered
Record entry
Clear entry
X
Credit
640
View general journal
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