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P7-1A (similar to) (Clck kan to view to tarsactim) 1, Prepare the trasactions in

ID: 2568907 • Letter: P

Question

P7-1A (similar to) (Clck kan to view to tarsactim) 1, Prepare the trasactions in the jounal(End debits rst then credits xplanations are not requred Round all annawers to the neanest whole dolar on account, with terms of 210 30 FOB shipping point The cost of the sale was 31,400 the cost of goods sold in Data Tase Date Debi Creda 2.100 210, n3 FOB shipping poine The cost of the sale was 51,400 Sold party supplies to a ustomer for $6 700, with a cost of 54 900 Customer paid with credit card The oredit card company charged a 1%service ho Jounaliee ths cost of goods soild part of the above sale Joenal Enty 6 Sald party suplls 4,130 to Party Queen on account, with f t2 Party Qieenet ned $12Softhe party The cost ofthe 15 Sold party supplies to customer for 5319 cash The cost of the sale 16 Recelved payment from Party Queen ss retuns and dcount 30, FO U shipping point The shaned products wan 5150 These products wwne neturined lo the 21 cout el Goods Sold inventery 800 23 Sald party supplies to a cuntomer for $460, wth cost of 5300 paid wth a credt cad The credit card company cha Received payment fhom Goody Bags Jonal Entry Priet Done hoose trom any st or enter any number in the input feith and then cack Check

Explanation / Answer

Journal Entry in the books of Chow Party Supplies Ltd under perpectual inventory system.

Oct .2

                                Account receivables - Debit         $2,100

                                                To Sales - Credit                                                $2,100

                (recording sales of party supplies on account to Goodly Bags)

Note: Goody Bags made payment on October 31 for items they purchased on October 2, i.e after terms of 2/10 terms hence sales discount is not applied

Cost of goods sold - Debit            $1,400

                                                To Inventory - Credit                      $1,400

                (recording cost of goods sold on above transaction)

Oct .4

                                Cash - Debit                                        $6,633

                                Credit card expenses - Credit     $67

                                                To Sales - Credit                                                $6,700

                (recording of sale and cash received via credit card and credit card charges)   

                                Cost of goods sold - Debit            $4,900

                                                To Inventory - Credit                      $4,900

                (recording cost of goods sold on above transaction)

Oct .6

                                Account receivables - Debit         $4,018

                                Sales Discount - Debit                    $82

                                                To Sales - Credit                                                $4,100

                (recording sales of party supplies on account to Party Queen and also discount offered on 2/10 terms)

                                Cost of goods sold - Debit            $2,600

                                                To Inventory - Credit                      $2,600

                (recording cost of goods sold on above transaction)

Oct . 12

                                Sales - Debit                       $325

                                                To Account receivables - Credit - $325

                (record of goods returned from customer from purchase made on October 6)

                                Inventory - Debit             $160

                                                To Cost of goods sold - Credit     $160

                (recording return of cost of goods sold and inventory for transaction made on October 6)

Oct.15

                                Cash - Debit                        $310

                                                To Sales - Credit                                $310

                (recording of cash sales)

                                Cost of goods sold - Debit            $194

                                                To Inventory - Credit                      $194

                (recording cost of goods sold on sales dated October 15 transaction)

Oct.16

                                Cash - Debit                                        $3,693

                                                To Account receivables - Credit $3,693  

                (record cash received)net of discount and returns) for sales dated October 6)

Oct.23

                                Cash - Debit                                        $460

                                Debit card expenses - Credit       $4.6

                                                To Sales - Credit                                                $455.4

                (recording of sale and cash received via debit card and debit card charges)

                                Cost of goods sold - Debit            $300

                                                To Inventory - Credit                      $300

                (recording cost of goods sold on above transaction)

Oct.31

                                Cash - Debit                        $2,100

                                                To Account receivables - Debit   $2,100

                (recording of cash received from goody bags for transactions sales made on October 2)