Explanation Sales is an activity of selling the merchandise inventory of a business. Record the journal entry for the sale of inventory on account. Date Accounts and Explanation Debit ($) Credit ($) July 14 Accounts Receivable 2,700 To Sales Revenue 2,700 (To record the sale of inventory on account) Table (1) Justification Accounts Receivable is an asset and it is increased by $2,700. Therefore, debit account receivable with $2,700. Sales revenue is revenue and it increases the value of equity by $2,700. Therefore, credit sales revenue with $2,700. Record the journal entry for cost of goods sold. Date Accounts and Explanation Debit ($) Credit ($) July 14 Cost of Goods Sold 1,050 Merchandise Inventory 1,050 (To record the cost of goods sold) Table (2) Justification Cost of goods sold is an expense account and it decreases the value of equity by $1,050. Therefore, debit cost of goods sold account with $1,050. Merchandise Inventory is an asset and it is decreased by $1,050. Therefore, credit inventory account with $1,050. Record the journal entry for freight charges paid. Date Account Title and Explanation Post Ref. Debit ($) Credit ($) July 16 Delivery Expense 115 Cash 115 (To record the payment of freight charges) Table (3) Justification: Delivery expense is an expense and it is increased by $115. Therefore, debit delivery expense account with $115. Cash is an asset and it is decreased by $115. Therefore, credit cash account with $115. Record the journal entry for sales return. Journal Entry Date Account Title and Explanation Post Ref. Debit ($) Credit ($) July 20 Sales Returns and Allowances 800 Accounts Receivable 800 (To record sales returns) Table (4) Justification: Sales return and allowance is an expense account and it decreases the value of equity by $800. Therefore, debit sales returns and allowances account with $800. Accounts Receivable is an asset and it is decreased by $800. Therefore, credit account receivable with $800. Record the journal entry for the return of the merchandise. Date Accounts and Explanation Debit ($) Credit ($) July 20 Inventory 285 Cost of Goods Sold 285 (To record the return of the merchandise) Table (5) Justification Inventory is an asset and it is increased by $285...

4th Edition

ISBN: 9780134125053

Author: Kemp, Robert S., Waybright, Jeffrey.

Publisher: Pearson Education,

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Chapter 4, Problem 17AE

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Record the sale transactions of Incorporation S.

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Chapter 4, Problem 16AE

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Chapter 4 Solutions

Financial Accounting

Ch. 4 - Prob. 1DQ Ch. 4 - What are some reasons why a merchandiser might...Ch. 4 - Why do businesses use subsidiary ledgers?Ch. 4 - Prob. 4DQ Ch. 4 - How many accounts are involved in recording the...Ch. 4 - Prob. 6DQ Ch. 4 - Prob. 7DQ Ch. 4 - Prob. 8DQ Ch. 4 - What is the difference between a single-step and...Ch. 4 - Prob. 10DQ

Ch. 4 - Which account does a merchandiser use that a...Ch. 4 - The two main inventory accounting systems are the...Ch. 4 - Prob. 3SC Ch. 4 - Prob. 4SC Ch. 4 - Prob. 5SC Ch. 4 - Prob. 6SC Ch. 4 - Prob. 7SC Ch. 4 - Prob. 8SC Ch. 4 - Prob. 9SC Ch. 4 - Prob. 10SC Ch. 4 - Prob. 11SC Ch. 4 - Prob. 12SC Ch. 4 - Prob. 1SE Ch. 4 - Prob. 2SE Ch. 4 - Prob. 3SE Ch. 4 - Prob. 4SE Ch. 4 - Prob. 5SE Ch. 4 - Prob. 6SE Ch. 4 - Prob. 7SE Ch. 4 - Prob. 8SE Ch. 4 - Prob. 9SE Ch. 4 - Prob. 10SE Ch. 4 - Prob. 11SE Ch. 4 - Prob. 12SE Ch. 4 - Prob. 13SE Ch. 4 - Prob. 14AE Ch. 4 - Prob. 15AE Ch. 4 - Prob. 16AE Ch. 4 - Prob. 17AE Ch. 4 - Prob. 18AE Ch. 4 - Prob. 19AE Ch. 4 - Prob. 20AE Ch. 4 - Prob. 21AE Ch. 4 - Prob. 22AE Ch. 4 - Prob. 23AE Ch. 4 - Prob. 24AE Ch. 4 - Prob. 25BE Ch. 4 - Prob. 26BE Ch. 4 - Prob. 27BE Ch. 4 - Prob. 28BE Ch. 4 - Prob. 29BE Ch. 4 - Prob. 30BE Ch. 4 - Prob. 31BE Ch. 4 - Prob. 32BE Ch. 4 - Prob. 33BE Ch. 4 - Prob. 34BE Ch. 4 - Prob. 35BE Ch. 4 - Prob. 36AP Ch. 4 - Prob. 37AP Ch. 4 - Prob. 38AP Ch. 4 - Prob. 39AP Ch. 4 - Prob. 40AP Ch. 4 - Prob. 41AP Ch. 4 - Prob. 42AP Ch. 4 - Prob. 43BP Ch. 4 - Prob. 44BP Ch. 4 - Prob. 45BP Ch. 4 - Prob. 46BP Ch. 4 - Prob. 47BP Ch. 4 - Prob. 48BP Ch. 4 - Prob. 49BP Ch. 4 - Prob. 1CE Ch. 4 - Prob. 1CP Ch. 4 - Prob. 1CFSAP Ch. 4 - Prob. 1EIA Ch. 4 - Prob. 2EIA Ch. 4 - Prob. 1FA Ch. 4 - Prob. 1IA Ch. 4 - Prob. 1SBA Ch. 4 - Prob. 1WC

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