ent March 1 Sold merchandise on account to Dodson Company for $3,400, terms 4/ 1
ID: 2552462 • Letter: E
Question
ent March 1 Sold merchandise on account to Dodson Company for $3,400, terms 4/ 10, n/30. 3 Dodson Company returned merchandise worth $1,200 to Molina. 9 Molina collected the amount due from Dodson Company from the March 1 sale. Molina sold merchandise for $1,125 in its retail outlet. The customer used his Molina credit card. 15 31 Molina added 1.6% monthly interest to the customer's credit card balance. dented wh Prepare journal entries for the transactions above. (Credit account titles are automatically in presented in the problem.) Debit Credit Date Account Titles and Explanation March 9 Policy I 2000-2018 John Way &SonsIns.; Al Rights Reserved. A Division of 1ohn Wilay &Sons; In o search 0iExplanation / Answer
Journal entries:
Journal Entries -
Date
Account Titles and Explanation
Debit
Credit
1-Mar
Accounts Receivable
$3,400
Sales Revenue
$3,400
(To record credit sales)
3-Mar
Sales Returns and allowances
$1,200
Accounts Receivable
$1,200
(To record merchandise returned)
9-Mar
Cash
$2,112
Sales Discount
$88
Accounts Receivable
$2,200
(To record payment received within the discount period - (3,400 -1,200) x4% = $88 discount)
15-Mar
Accounts Receivable - Customer Credit Card
$1,125
Sales Revenue
$1,125
(To record sale of merchandise on retail)
31-Mar
Accounts Receivable - Customer Credit Card
$18
Interest Revenue
$18
(To record 1.6% monthly interest on 1,125 credit card sales)
Journal Entries -
Date
Account Titles and Explanation
Debit
Credit
1-Mar
Accounts Receivable
$3,400
Sales Revenue
$3,400
(To record credit sales)
3-Mar
Sales Returns and allowances
$1,200
Accounts Receivable
$1,200
(To record merchandise returned)
9-Mar
Cash
$2,112
Sales Discount
$88
Accounts Receivable
$2,200
(To record payment received within the discount period - (3,400 -1,200) x4% = $88 discount)
15-Mar
Accounts Receivable - Customer Credit Card
$1,125
Sales Revenue
$1,125
(To record sale of merchandise on retail)
31-Mar
Accounts Receivable - Customer Credit Card
$18
Interest Revenue
$18
(To record 1.6% monthly interest on 1,125 credit card sales)
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