Please complete the transactions for QS4-8 and prepare a multi-step income state

Question

Please complete the transactions for QS4-8 and prepare a multi-step income statement

Prepare journal entries to record each of the following sales transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. Apr. 1 Sold merchandise for $3,000, with credit terms n/30; invoice dated April 1. The cost of the 4 The customer in the April 1 sale returned $300 of merchandise for full credit. The merchandise, 8 Sold merchandise for $1,000, with credit terms of 1/10, n/30; invoice dated April 8. Cost of 11 Received payment for the amount due from the April 1 sale less the return on April 4 merchandise is $1,800. which had cost $180, is returned to inventory. the merchandise is $700.

Explanation / Answer

Journal entries:

Date General Journal Debit Credit Apr. 1 Accounts receivable 3000 Sales revenue 3000 (To record sales on account) Cost of goods sold 1800 Merchandise inventory 1800 (To record the cost of the goods sold) Apr. 4 Sales returns and allowances 300 Accounts receivable 300 (To record merchandise returned) Merchandise inventory 180 Cost of goods sold 180 (To record cost of merchandise returned) Apr. 8 Accounts receivable 1000 Sales revenue 1000 (To record sales on account) Cost of goods sold 700 Merchandise inventory 700 (To record the cost of the goods sold) Apr. 11 Cash 2700 Accounts receivable 2700 (To record collection on account)

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