Homework: Chapter 5 Homework Save Score: 0.15 of 1 pt 1 of 8 (2 complete) HW Sco

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Homework: Chapter 5 Homework Save Score: 0.15 of 1 pt 1 of 8 (2 complete) HW Score: 14.37%, 1.15 of 8 pts S5A-13 (similar to) Question Help Journalize the following sales transactions for Bing Company. Explanatons are not required. (Assume the company uses a perpetual inventory system.) (Click the icon to view the transactions) Apr. 1: Bing Company sold merchandise inventory for $170. The cost of the inventory was $105. The customer paid cash. Bing Company was running a promotion and the customer received a $40 award at the time of sale that can be used at a future date on any Bing Company merchandise. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step. (Record debits first, then credits. Exclude explanations from journal entries.) Date Debit Credit More Info Apr. 1 Cash 170 Sales Revenue 130 Unearned Revenue 40 Apr. 1 Bing Company sold merchandise inventory for S170. The cost of the inventory was $105. The customer paid cash. Bing Company was running a promotion and the customer received a $40 award at the time of sale that can be used at a future date on any Bing Company merchandise. Now journalize the expense related to the April 1 sale Cost of inventory, $105. Date Accounts Debit Credit May 15 The customer uses the $40 award when purchasing merchandise inventory for $60. The cost of the inventory was $20. The customer paid cash. Apr. 1 Print Done

Explanation / Answer

Date Accounts Debit Credit April ,1 Cost of Goods Sold 105 Merchandise Inventory 105 May,15 Cash 20 Unearned revenue 40 Sales Revenue 60 May,15 Cost of Goods Sold 20 Merchandise Inventory 20

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