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 ($) Credit ($) September 3 Accounts Receivable 3,700 To Sales Revenue 3,700 (To record the sale of inventory on account) Table (1) Description Accounts Receivable is an asset and it is increased by $3,700. Therefore, debit account receivable with $3,700. Sales revenue is revenue and it increases the value of equity by $3,700. Therefore, credit sales revenue with $3,700. Record the journal entry for cost of goods sold. Date Accounts and Explanation Debit ($) Credit ($) September 3 Cost of Goods Sold 2,200 Inventory 2,200 (To record the cost of goods sold) Table (2) Description Cost of goods sold is an expense account and it decreases the value of equity by $2,200. Therefore, debit cost of goods sold account with $2,200. Inventory is an asset and it is decreased by $2,200. Therefore, credit inventory account with $2,200. Record the journal entry for freight charges paid. Journal Entry Date Account Title and Explanation Post Ref. Debit ($) Credit ($) September 4 Delivery Expense 250 Cash 250 (To record the payment of freight charges) Table (3) Description: Delivery expense is an expense and it is increased by $250. Therefore, debit delivery expense account with $250. Cash is an asset and it is decreased by $250. Therefore, credit cash account with $250. Record the journal entry for the sale of inventory for cash. Date Accounts and Explanation Debit ($) Credit ($) September 10 Cash 1,800 To Sales Revenue 1,800 (To record the sale of inventory on account) Table (4) Description Cash is an asset and it is increased by $1,800. Therefore, debit cash account with $1,800. Sales revenue is revenue and it increases the value of equity by $1,800. Therefore, credit sales revenue with $1,800. Record the journal entry for cost of goods sold. Date Accounts and Explanation Debit ($) Credit ($) September 10 Cost of Goods Sold 1,080 Inventory 1,080 (To record the cost of goods sold) Table (5) Description Cost of goods sold is an expense account and it decreases the value of equity by $1,080. Therefore, debit cost of goods sold account with $1,080. Inventory is an asset and it is decreased by $1,080. Therefore, credit inventory account with $1,080. Record the journal entry for the balance amount received. Journal Entry Date Account Title and Explanation Post Ref. Debit ($) Credit ($) September 17 Cash 3,552 (2) Sales Discounts 148 (1) Accounts Receivable 3,700 (To record cash received and discounts allowed) Table (6) Working Notes: Calculate sales discount amount. Accounts receivable, net = $3,700 Sales discount percentage = 4% Sales discount = $3,700 × 4 100 = $148 (1) Calculate cash received. Accounts receivable, net = $3,700 Sales discount = $148 (1) Cash received = Accounts receivable, net – Sales discount = $3,700 – $148 = $3,552 (2) Description: Cash is an asset and it is increased by $3,552

Financial Accounting, Student Value Edition (4th Edition)

4th Edition

ISBN: 9780134114811

Author: Robert Kemp, Jeffrey Waybright

Publisher: PEARSON

See similar textbooks

Question

Chapter 4, Problem 37AP

To determine

Record the sale transactions of Incorporation N.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 4, Problem 36AP

Chapter 4, Problem 38AP

Students have asked these similar questions

proide answer please

expert of accounting answer

provide correct accounting question

Chapter 4 Solutions

Financial Accounting, Student Value Edition (4th Edition)

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

Knowledge Booster

Similar questions

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education