what is the journal entries for this problem? **I NEED ACTUAL JOURNAL ENTRIES EX
ID: 2384981 • Letter: W
Question
what is the journal entries for this problem?**I NEED ACTUAL JOURNAL ENTRIES
EX: DEBIT. INVENTORY CREDIT ACCOUNTS PAYABLE
1. Write the journal entries
Jul. 17 Purchased 57 watches for $8,037 ($141 per watch) on account.
Jul. 31 Sold 44 watches for $13,596 cash.
Aug. 12 Purchased 43 watches for $6,708 ($156 per watch) cash.
Aug. 22 Sold 22 watches for $6,798 on account.
Sep. 19 Paid for watches ordered on July 17.
Sep 27 Received full payment for watches sold on account on August 22.
Oct. 27 Purchased 81 watches for $13,770 ($170 per watch) cash.
Nov. 20 Sold 105 watches for $32,445 cash.
Dec. 4 Purchased 104 watches for $18,096 ($174 per watch) cash.
Dec. 8 Sold 32 watches for $9,888 on account.
Explanation / Answer
I am assuming FIFO inevntory method. Jul. 17 Purchased 57 watches for $8,037 ($141 per watch) on account. 17 Jul yy Merchandise Inventory Dr 8037 Acct Payable Cr 8037 Jul. 31 Sold 44 watches for $13,596 cash. 31 Jul yy Cash Dr 13,596 Sales Revenue Cr 13,596 31 Jul yy Cost of goods sold Dr 6204 Merchandise inventory Cr 6204 (Cost of 44 wtaches @$141 per watch = 6204) Aug. 12 Purchased 43 watches for $6,708 ($156 per watch) cash. 12 Aug yy Merchandise Inventory Dr 6708 Cash Cr 6708 Aug. 22 Sold 22 watches for $6,798 on account. 22 AUg yy Acct Rxable Dr 6798 Sales Rev Cr 6798 22 AUg yy Cost of goods sold Dr 3237 Merchandise inventory Cr 3237 (Cost of 13watches @$141 + 9 watch@$156 =3237) Sep. 19 Paid for watches ordered on July 17. 19 Sep yy Acct Payable Dr 8037 Cash Cr 8037 Sep 27 Received full payment for watches sold on account on August 22. 27 Sep yy Cash Dr 6798 Acct Rxable Cr 6798 Oct. 27 Purchased 81 watches for $13,770 ($170 per watch) cash. 27 Oct yy Merchandise Inventory Dr 13,770 Cash Cr 13,770 Nov. 20 Sold 105 watches for $32,445 cash. 20 Nov yy Cash Dr 32,445 Sales Rev Cr 32,445 20 Nov yy Cost of goods sold Dr 17,374 Merchandise inventory Cr 17,374 (Cost of 34watches @$156 + 71 watch@$170 =17,374) Dec. 4 Purchased 104 watches for $18,096 ($174 per watch) cash. 04 Dec Merchandise Inventory Dr 18,096 Cash Cr 18,096 Dec. 8 Sold 32 watches for $9,888 on account. 8 Dec yy Acct Payable Dr 9,888 Sales Rev Cr 9,888 8 Dec yy Cost of goods sold Dr 5528 Merchandise inventory Cr 5528 (Cost of 10watches @$170 + 22 watch@$174 =5528)
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