During the months of January and February, Solitare Corporation sold goods to th

Question

During the months of January and February, Solitare Corporation sold goods to three customers. The sequence of events was as follows Jan. 6 Sold goods for $250 to Wizard Inc. with terms 2/10, n/30. The goods cost Solitare $105 6 Sold goods to Spyder Corp. for $150 with terms 2/10, n/30. The goods cost Solitare S95. 14 Collected cash due from Wizard Inc Feb. 2 Collected cash due from Spyder Corp. 28 Sold goods for $120 to Bridges with terms 2/10, n/45. The goods cost Solitare S65. Required: Prepare journal entries to record the transactions, assuming Solitare uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Explanation / Answer

Journal entry :

Date account and explanation debit credit Jan 6 Account receivable 250 Sales revenue 250 (To record Sales) Cost of goods sold 105 Merchandise inventory 105 (To record cost of goods sold) Jan 6 Account receivable 150 Sales revenue 150 (To record Sales) Cost of goods sold 95 Merchandise inventory 95 (To record cost of goods sold) Jan 14 Cash (250*98%) 245 Sales discount 5 Account receivable 250 (To record amount received) Feb 2 Cash 150 Account receivable 150 (To record amount received) Feb 28 Account receivable 120 Sales revenue 120 (To record Sales) Cost of goods sold 65 Merchandise inventory 65 (To record cost of goods sold)

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.