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

ID: 2514650 • Letter: D

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 $500 to Wizard Inc. with terms 2/10, n/30. The goods cost Solitare $155 6 Sold goods to Spyder Corp. for $250 with terms 2/10, n/30. The goods cost Solitare $145 14 Collected cash due from Wizard Inc Feb. 2 Collected cash due from Spyder Corp 28 Sold goods for $220 to Bridges with terms 2/10, n/45. The goods cost Solitare $115 Required: Prepare journal entries to record the transactions, assuming Solitare uses a perpetual inventory system. (If no entry is required for a transactionlevent, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 3 4 6 8 Record the cost of goods sold of $145. Note: Enter debits before credits Date General Journal Debit Credit Jan. 06 Record entry Clear entry View general journal

Explanation / Answer

Answer

Date

Accounts Titles

Debit

Credit

06-Jan

Accounts Receivables

$            500.00

Sales Revenue

$                 500.00

06-Jan

Cost of Goods Sold

$            155.00

Inventory

$                 155.00

06-Jan

Accounts Receivables

$            250.00

Sales Revenue

$                 250.00

06-Jan

Cost of Goods Sold

$            145.00

Inventory

$                 145.00

14-Jan

Cash

$            490.00

Sales Discount

$              10.00

Accounts Receivables

$                 500.00

(cash received within 10 days term, hence 2% discount on $500)

02-Feb

Cash

$            250.00

Accounts Receivables

$                 250.00

(Cash received after 10 days term, hence no cash discount)

28-Feb

Accounts Receivables

$            220.00

Sales Revenue

$                 220.00

28-Feb

Cost of Goods Sold

$            115.00

Inventory

$                 115.00

Date

Accounts Titles

Debit

Credit

06-Jan

Accounts Receivables

$            500.00

Sales Revenue

$                 500.00

06-Jan

Cost of Goods Sold

$            155.00

Inventory

$                 155.00

06-Jan

Accounts Receivables

$            250.00

Sales Revenue

$                 250.00

06-Jan

Cost of Goods Sold

$            145.00

Inventory

$                 145.00

14-Jan

Cash

$            490.00

Sales Discount

$              10.00

Accounts Receivables

$                 500.00

(cash received within 10 days term, hence 2% discount on $500)

02-Feb

Cash

$            250.00

Accounts Receivables

$                 250.00

(Cash received after 10 days term, hence no cash discount)

28-Feb

Accounts Receivables

$            220.00

Sales Revenue

$                 220.00

28-Feb

Cost of Goods Sold

$            115.00

Inventory

$                 115.00

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