S5-4 Journalizing sales transactions Journalize the following sales transactions for Salem Sportswear. Explanations are not required. The company estimates sales returns at the end of each month. Jul. 1 Salem sold $20,000 of men's sportswear for cash. Cost of goods sold is $10,000. Salem sold $62,000 of women's sportswear on account, credit terms are 3/10, n/30. Cost of goods is $31,000. 3. Salem received a $4,500 sales return on damaged goods from the customer on July 1. Cost of goods damaged is $2,250. Salem receives payment from the customer on the amount due, less discount. 10
S5-4 Journalizing sales transactions Journalize the following sales transactions for Salem Sportswear. Explanations are not required. The company estimates sales returns at the end of each month. Jul. 1 Salem sold $20,000 of men's sportswear for cash. Cost of goods sold is $10,000. Salem sold $62,000 of women's sportswear on account, credit terms are 3/10, n/30. Cost of goods is $31,000. 3. Salem received a $4,500 sales return on damaged goods from the customer on July 1. Cost of goods damaged is $2,250. Salem receives payment from the customer on the amount due, less discount. 10
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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earning Objective 3
S5-4 Journalizing sales transactions
Journalize the following sales transactions for Salem Sportswear. Explanations are not
required. The company estimates sales returns at the end of each month.
Jul. 1
Salem sold $20,000 of men's sportswear for cash. Cost of goods sold is
$10,000.
Salem sold $62,000 of women's sportswear on account, credit terms are
3/10, n/30. Cost of goods is $31,000.
3
Salem received a $4,500 sales return on damaged goods from the
customer on July 1. Cost of goods damaged is $2,250.
Salem receives payment from the customer on the amount due, less
discount.
10
Expert Solution
Step 1
Journal entry: The business-related transactions are recorded in the books by the way of journal entries. The items related to the transactions are debited and credited while recording the journal entry according to the double-entry system. The balance of the debit side matches with the credit side under the double-entry system.
Periodic inventory system: In the periodic inventory system updates and records the inventory transactions either at the end of the month/ quarter/ year.
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