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Alled Parts was organized on May 1, 2015, and made its first purchase ofl mercha

ID: 2539515 • Letter: A

Question

Alled Parts was organized on May 1, 2015, and made its first purchase ofl merchandise on May 3. The a On May 7, Baker retums 357 units because they did not ft the oustomer's needs Allied Parts estores b. On May &Baker; discovers that 85 units are damaged but are still of some use and theretore keeps the the units to its inventory discovers hat 1 Allied Parts sends a $122 oredit memerandum to compensate. Baker retums the remaining 41 unts to Allied Parts. Allied Parts restores the 41 neturned units to its inventory Prepare entries for Allied Pats to necord the May 5 sale and each of the above separate trasactions using Journal entry worksheet Allied Parts sold 1.020 of the units for $12 per unit to Baker Co On May 5. Allied Parts sold 1.020 of the units for $12 per unit to Baker Co. Terms of the sale were 2/10, n/60. May 05 00

Explanation / Answer

Journal entries

date

explanation

debit

credit

5-May

accounts receivables

12240

sales

12240

5-May

cost of goods sold

8160

inventory

8160

7-May

sales return and allowance

4284

accounts receivables

4284

7-May

inventory

2856

cost of goods sold

2856

8-May

sales return and allowance

340

accounts receivables

340

15-May

inventory

122

cost of goods sold

122

15-May

sales return and allowance

492

accounts receivables

492

15-May

cost of goods sold

328

inventory

328

Journal entries

date

explanation

debit

credit

5-May

accounts receivables

12240

sales

12240

5-May

cost of goods sold

8160

inventory

8160

7-May

sales return and allowance

4284

accounts receivables

4284

7-May

inventory

2856

cost of goods sold

2856

8-May

sales return and allowance

340

accounts receivables

340

15-May

inventory

122

cost of goods sold

122

15-May

sales return and allowance

492

accounts receivables

492

15-May

cost of goods sold

328

inventory

328

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