Presented below are selected transactions of Molina Company. Molina sells in lar

Question

Presented below are selected transactions of Molina Company. Molina sells in large quantities to other companies and also sells its product in a small retail outlet.

March 1 Sold merchandise on account to Dodson Company for $11,000, terms 4/10, n/30.

March 3 Dodson Company returned merchandise worth $400 to Molina.

March 9 Molina collected the amount due from Dodson Company from the March 1 sale.

March 15 Molina sold merchandise for $1,000 in its retail outlet. The customer used his Molina credit card.

March 31 Molina added 1.4% monthly interest to the customer’s credit card balance.

Prepare journal entries for the transactions above

Explanation / Answer

Date Account Title and explanation Debit($) Credit($) Mar-01 Accounts receivable 11000 Sales 11000 (Sold merchandise on account to Dodson Company for $11,000) Mar-03 Sales Return 400 Accounts receivable 400 (Dodson Company returned merchandise worth $400) Mar-09 Cash 10176 Discount Allowed 424 Accounts receivable 10600 (Molina collected the amount due from Dodson Company from the March 1 sale) Mar-15 Accounts receivable 1000 Sales 1000 (Sale of merchandise using the company credit card recorded) Mar-31 Accounts receivable 14 Interest Income 14 (Molina added 1.4% monthly interest to the customer’s credit card balance.)

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