P. More Info Mar. 4 O O Received $900 for a cash sale of merchandise inventory t

Question

P. More Info Mar. 4 O O Received $900 for a cash sale of merchandise inventory to a customer (cost, $184). Received $120 on account, terms n/30 from Byron Lablue. Received $1,320 on a note receivable from Betty Mack. This amount includes the $1,200 note receivable plus interest revenue. Received $400 for a cash sale of merchandise inventory to a customer (cost, $114). Borrowed $1,900 by signing a note payable to Interstate Bank. Received $800 on account from Wade Aldo. Collection was received after the discount period and included $17 of sales discounts forfeited. 15 24 27 Print Done

Explanation / Answer

Cah receipt Journal Amount credited Cash Dr. Accounts Recs. Cr. Sales Rev. Cr. Sales Disc. Forfeited. Cr. Other Accounts Cr. COGS Dr. Merchandise Inventory Cr. Net To sales 900 900 0 To Byron Lablue 120 120 0 To Betty Mack 1320 1200 120 0 To sales 400 400 0 To note payable 1900 1900 0 To Wade Aldo 800 800 0 Total 5440 2120 1300 0 2020 0 0 Account Receivable Subsidary ledger Wade Aldo Dr. Cr. By Cash 800 To sales dicount forfeited 17 Total 17 800 Byron Lablue Dr. Cr. By Cash 120 Total 0 120 Cost of goods sold account Dr. Cr. To Merchandise Inventory 184 To Merchandise Inventory 114 Total 0 298 Merchandise Inventory Dr. Cr. By Cost of goods sold account 184 By Cost of goods sold account 114 Total 298 0 Interest revenue Dr. Cr. By cash 120 Total 0 120 Sales discount forfeited Dr. Cr. By Wade Aldo 17 Total 0 17 Note receivable (Betty Mack) Dr. Cr. By Cash 1200 Total 0 1200 Note payable Dr. Cr. By Cash 1900 Total 0 1900

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