Question

Journalize the following inventory merchandise transactions, assuming that the Conquest company uses the perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles. Dec. 1 Conquest purchased $1,500 of merchandise on account. The credit terms were 2/10, n/30. 6 Received payment within the discount period.

Answer 1

Solution and explanation:

The following journal entry will be passed for the inventory merchandise transactions

date accounts & explanation Debit (in dollars) Credit (in dollars)

Dec 1      Account receivable a/c       13100  

                        Sales a/c                                                13100

            The cost of goods sold       8515  

             Merchandise inventory a/c                            8515

(To record the sales)  

   

Dec 6 Cash a/c                                        12838  

sales discount a/c                                 262  

     Account receivable a/c                                         13100

(To record the payment received)  

Thus, these two entries will be passed on December 1, and December 6.