Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Record the following transactions in general journal form. a. Sold merchandise o

ID: 2427961 • Letter: R

Question

Record the following transactions in general journal form. a. Sold merchandise on account to A. Bauer, $680 plus $54.40 sales tax (invoice no. D446). b. Bauer returned $105.50 of the merchandise. Issued credit memo no. 114 for $113.94 ($105.50 for the amount of the sale plus $8.44 for the amount of the sales tax). Journalize the following transactions in general journal form. a. Bought merchandise on account from Brewer, Inc., invoice no. B2997, $914; terms net 30 days; FOB destination. b. Received credit memo no. 96 from Brewer, Inc., for merchandise returned, $238.

Explanation / Answer

9-3

a.

The journal entry for sales on account to A Bauer is as under:

A Bauer Account                                                              $734.40

                Sales Account                                                                                    $680

                Sales Tax Liability Account                                                                            $54.40

(Being sales made on account and the entry for sales tax payable is passed)

b.

When the Bauer got returned then the journal entry would be as under:

Sales Returned and Allowances                 $105.50

Sales Tax Liability Account                            $    8.44

                A Bauer                                                                                                $113.94

(Being merchandise returned from A Bauer)

9-4

a.

Merchandise Inventory Account                               $914

                Accounts payable                                                                            $914

(Being merchandise inventory purchased on account from Brewer Inc. via invoice no. B2997)

b.

Accounts payable                                            $238

                Merchandise Inventory Account                                                               $238

(Being merchandise inventory returned via credit memo no.36 from Brewer Inc.)

Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
Chat Now And Get Quote