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 $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 transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Record the sales on account of $500 to Wizard Inc. on terms 2/10, n/30 1 30 2Record the cost of goods sold of $155 3 Record the sales on account of $250 to SpyderCorp on terms 2/10, n/30 Record the cost of goods sold of $145 Record the receipt of payment in full from Wizard Inc. Record the receipt of payment in full from SpyderCorp Record the sales on account of $220 to Bridges on terms 4 Credit 5 6 7 Note :·-journal entry has been entered Record entry Clear entry View general journal

Explanation / Answer

Journal entry :

No. Account titles and explanation debit credit 1 Account receivable 500      Sales revenue 500 2 Cost of goods sold 155      Merchandise inventory 155 3 Account receivable 250      Sales revenue 250 4 Cost of goods sold 145      Merchandise inventory 145 5 Cash (500*98%) 490 Sales discount 10      Account receivable 500 6 Cash 250      Account receivable 250 7 Account receivable 220     Sales revenue 220 Cost of goods sold 115      Merchandise inventory 115

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