Explanation Record the journal entry for the sale of inventory on account. Date Accounts and Explanation Debit ($) Credit ($) August 1 Accounts Receivable 6,500 To Sales Revenue 6,500 (To record the sale of inventory on account) Table (1) Accounts Receivable is an asset and it is increased by $6,500. Therefore, debit account receivable with $6,500. Sales revenue is revenue and it increases the value of equity by $6,500. Therefore, credit sales revenue with $6,500. Record the journal entry for the balance amount received. Journal Entry Date Account Title and Explanation Post Ref. Debit ($) Credit ($) August 8 Cash 6,435 (2) Sales Discounts 65 (1) Accounts Receivable 6,500 (To record cash received and discounts allowed) Table (2) Working Notes: Calculate sales discount amount. Accounts receivable = $6,500 Sales discount percentage = 1% Sales discount = $6,500 × 1 100 = $65 (1) Calculate cash received. Accounts receivable = $6,500 Sales discount = $65 (1) Cash received = Accounts receivable, net – Sales discount = $6,500 – $65 = $6,435 (2) Cash is an asset and it is increased by $6,435. Therefore, debit cash account with $6,435. Sales Discounts is a contra revenue account and would have a debit balance. Therefore, debit sales discounts account with $65. Accounts Receivable is an asset and it is decreased by $6,500. Therefore, credit account receivable with $6,500. Record the journal entry for the sale of inventory on account. Date Accounts and Explanation Debit ($) Credit ($) August 15 Accounts Receivable 3,100 To Sales Revenue 3,100 (To record the sale of inventory on account) Table (3) Accounts Receivable is an asset and it is increased by $3,100. Therefore, debit account receivable with $3,100. Sales revenue is revenue and it increases the value of equity by $3,100. Therefore, credit sales revenue with $3,100. Record the journal entry for delivery charges paid

Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)

6th Edition

ISBN: 9780134486840

Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura

Publisher: PEARSON

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Chapter 5, Problem 5.30E

To determine

Sales is an activity of selling the merchandise inventory of a business.

To Record: The sale transactions of Company S.

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Chapter 5, Problem 5.29E

Chapter 5, Problem 5.31E

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Chapter 5 Solutions

Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)

Ch. 5 - Which account does a merchandiser use that a...Ch. 5 - The two main inventory accounting systems are the...Ch. 5 - The journal entry for the purchase of inventory on...Ch. 5 - JC Manufacturing purchase d inventory for 5,300...Ch. 5 - 5. Austin Sound sold inventory for $300,000, terms...Ch. 5 - Suppose Daves Discounts Merchandise Inventory...Ch. 5 - Which of the following accounts would be closed at...Ch. 5 - What is the order of the subtotals that appear on...Ch. 5 - Prob. 9QC Ch. 5 - Prob. 10QC

Ch. 5 - The journal entry for the purchase of inventory on...Ch. 5 - What is a merchandiser, and what is the name of...Ch. 5 - Prob. 2RQ Ch. 5 - Describe the operating cycle of a merchandiser.Ch. 5 - What is Cost of Goods Sold (COGS), and where is it...Ch. 5 - How is gross profit calculated, and what does it...Ch. 5 - What are the two types of inventory accounting...Ch. 5 - What is an invoice?Ch. 5 - What account is debited when recording a purchase...Ch. 5 - Prob. 9RQ Ch. 5 - What is a purchase return? How does a purchase...Ch. 5 - Prob. 11RQ Ch. 5 - How is the net cost of inventory calculated?Ch. 5 - What are the two journal entries involved when...Ch. 5 - Prob. 14RQ Ch. 5 - Prob. 15RQ Ch. 5 - When granting a sales allowance, is there a return...Ch. 5 - Prob. 17RQ Ch. 5 - Prob. 18RQ Ch. 5 - What are the four steps involved in the closing...Ch. 5 - Prob. 20RQ Ch. 5 - Prob. 21RQ Ch. 5 - Prob. 22RQ Ch. 5 - Prob. 23RQ Ch. 5 - Prob. 24RQ Ch. 5 - Prob. 25RQ Ch. 5 - When recording purchase returns and purchase...Ch. 5 - What account is debited when recording the payment...Ch. 5 - Prob. 28RQ Ch. 5 - Is an adjusting entry needed for inventory...Ch. 5 - Highlight the differences in the closing process...Ch. 5 - Describe the calculation of cost of goods sold...Ch. 5 - Comparing periodic and perpetual inventory systems...Ch. 5 - S5-2 Journalizing purchase transactions Consider...Ch. 5 - Prob. 5.3SE Ch. 5 - Prob. 5.4SE Ch. 5 - Prob. 5.5SE Ch. 5 - Prob. 5.6SE Ch. 5 - Prob. 5.7SE Ch. 5 - Prob. 5.8SE Ch. 5 - S5-9 Journalizing closing entries Rocky RV...Ch. 5 - Prob. 5.10SE Ch. 5 - Prob. 5.11SE Ch. 5 - Prob. 5.12SE Ch. 5 - Prob. 5.13SE Ch. 5 - Prob. 5.14SE Ch. 5 - Prob. 5.15SE Ch. 5 - Prob. 5.16SE Ch. 5 - Prob. 5.17SE Ch. 5 - Prob. 5.18E Ch. 5 - Prob. 5.19E Ch. 5 - Prob. 5.20E Ch. 5 - Prob. 5.21E Ch. 5 - Prob. 5.22E Ch. 5 - Prob. 5.23E Ch. 5 - Prob. 5.24E Ch. 5 - Prob. 5.25E Ch. 5 - Prob. 5.26E Ch. 5 - Prob. 5.27E Ch. 5 - Prob. 5.28E Ch. 5 - Prob. 5.29E Ch. 5 - Prob. 5.30E Ch. 5 - Prob. 5.31E Ch. 5 - E5B-32 Journalizing closing entries—periodic...Ch. 5 - E5B-33 Computing cost of goods sold in a periodic...Ch. 5 - Prob. 5.34AP Ch. 5 - P5-35A Journalizing purchase and sale...Ch. 5 - Prob. 5.36AP Ch. 5 - Prob. 5.37AP Ch. 5 - Prob. 5.38AP Ch. 5 - Prob. 5.39AP Ch. 5 - Prob. 5.40AP Ch. 5 - Prob. 5.41BP Ch. 5 - Prob. 5.42BP Ch. 5 - Prob. 5.43BP Ch. 5 - Prob. 5.44BP Ch. 5 - Prob. 5.45BP Ch. 5 - Prob. 5.46BP Ch. 5 - Prob. 5.47BP Ch. 5 - Prob. 49CP Ch. 5 - Prob. 50CP Ch. 5 - P5-51 Journalizing purchase and sale transactions,...Ch. 5 - Prob. 5.1TI Ch. 5 - Prob. 5.1DC Ch. 5 - Dobbs Wholesale Antiques makes all sales under...Ch. 5 - Rae Philippe was a warehouse manager for Atkins...Ch. 5 - Prob. 5.1FSC

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Sales is an activity of selling the merchandise inventory of a business. To Record: The sale transactions of Company S.