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Record journal entries for the following transactions for ABC Inc. during Septem

ID: 2507008 • Letter: R

Question

Record journal entries for the following transactions for ABC Inc. during September 2008 (no need to provide dates and explanations):

1.       Sales on account during September were $40,000.

2.       $34,000 was collected from customers on account during September.

3.       Cash sales were $50,000 during September.

4.       $40,000 of merchandise was purchased on account during September.

5.       The cost of merchandise sold during September was $60,000.

6.       $38,000 was paid to supplies on account during September.

7.       $4,000 was paid during September for the month

Record journal entries for the following transactions for ABC Inc. during September 2008 (no need to provide dates and explanations): Sales on account during September were $40,000. $34,000 was collected from customers on account during September. Cash sales were $50,000 during September. $40,000 of merchandise was purchased on account during September. The cost of merchandise sold during September was $60,000. $38,000 was paid to supplies on account during September. $4,000 was paid during September for the month's advertising costs. $11,000 was paid for wages during September. Miscellaneous expenses of $10,000 were paid in cash during September.10. Amortization on the equipment for Sep 2008 was $500.

Explanation / Answer

1. Sales on account during September were $40,000.

Debit: Accounts receivable 40,000

Credit: Sales revenue 40,000

2. $34,000 was collected from customers on account during September.

Debit: Cash 34,000

Credit: Accounts receivable 34,000

3. Cash sales were $50,000 during September.

Debit: Cash 50,000

Credit: Sales revenue 50,000

4. $40,000 of merchandise was purchased on account during September.

Debit: Merchandise inventory 40,000

Credit: Accounts payable 40,000

5. The cost of merchandise sold during September was $60,000.

Debit: Cost of goods sold 60,000

Credit: Merchandise inventory 60,000

6. $38,000 was paid to supplies on account during September.

Debit: Supplies 38,000

Credit: Accounts payable 38,000

7. $4,000 was paid during September for the month