journalize the following merchandise transactions, using the net method under a perpetual inventory system.
a. Sold merchandise on account, $24,600 with terms 1/10, n/30. The cost of the goods sold was $14,760. If an amount box does not require an entry, leave it blank.
Accounts Receivable
24,354
Sales
24,354
Cost of Goods Sold
14,760
Inventory
14,760
b. Received payment less the discount. If an amount box does not require an entry, leave it blank.
Cash
24,600(wrong)
Accounts Receivable
24,600(wrong)
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(b) The exercise assumes the invoice will be paid within the discount period, so the seller records the sale at the discounted amount.
c. Refunded $420 to customer for defective merchandise that was not returned. If an amount box does not require an entry, leave it blank.
Customer Refunds Payable
420
Cash
420
To journalize the merchandise transactions using the net method under a perpetual inventory system, follow these steps:
a. Sold merchandise on account with terms 1/10, n/30. The cost of goods sold was $14,760.
The journal entry for this transaction would be:
Accounts Receivable $24,354 (24,600 - 1% discount)
Sales $24,354
Cost of Goods Sold $14,760
Inventory $14,760
In this entry, the Accounts Receivable account is debited for the net amount (selling price minus the discount), and the Sales account is credited for the same amount. Meanwhile, the Cost of Goods Sold account is debited for the cost of goods sold, and the Inventory account is credited for the same amount to reduce inventory.
b. Received payment less the discount.
If the invoice is paid within the discount period, the seller records the sale at the discounted amount.
The journal entry for this transaction would be:
Cash $24,015 (24,600 - 1% discount)
Sales Discount $ 339 (1% discount)
Accounts Receivable $24,354 (original sales amount)
In this entry, the Cash account is debited for the discounted amount received, the Sales Discount account is credited for the discount amount, and the Accounts Receivable account is credited for the original sales amount.
c. Refunded $420 to the customer for defective merchandise that was not returned.
The journal entry for this transaction would be:
Customer Refunds Payable $420
Cash $420
In this entry, the Customer Refunds Payable account is debited for the refund amount, and Cash account is credited for the same amount.
Remember to consult your accounting textbooks or software for specific details and to ensure accuracy in recording transactions.
(c) Customer Refunds Payable 420
Cash 420