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.)
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