192.Austin's Pub Supply uses the
periodic
inventory system and had the following sales transactions during August:
August 2Sold merchandise to Jo’s Pub and Grub on credit for $3,750, terms 2/15, n/60. The items sold had a cost of $1,200.
August 4Jo’s Pub and Grub returned merchandise that had a selling price of $300. The cost of the merchandise returned was $110.
August 13Jo’s Pub and Grub paid for the merchandise sold on August 2, taking any appropriate discount earned.
Prepare the journal entries that Austin's Pub Supply must make to record these transactions.
193.Preston Office Furniture, Inc. uses the
periodic
inventory system and had the following transactions during the month of May:
May 3Sold merchandise to a customer on credit for $600, terms 2/10, n/30. The cost of the merchandise sold was $350.
May 4Sold merchandise to a customer for cash of $425. The cost of the merchandise was $250.
May 6Sold merchandise to a customer on credit for $1,300, terms 2/10, n/30. The cost of the merchandise sold was $750.
May 8The customer from May 3 returned merchandise with a selling price of $100. The cost of the merchandise returned was $55.
May 15The customer from May 6 paid the full amount due, less any appropriate discounts earned.
May 31The customer from May 3 paid the full amount due, less any appropriate discounts earned.
Prepare the required journal entries that Preston Office Furniture, Inc. must make to record these transactions.
Accounts receivable1,300
Calculation: Discount = $1,300 * .02 = $26
May 31Cash500
Accounts receivable500
194.At its fiscal year-end of June 30, Kendall Wholesale's general ledger shows the following selected account balances. Kendall Wholesale uses the
perpetual
inventory system.
Merchandise Inventory$60,000
Sales940,000
Sales discounts16,000
Sales returns and allowances8,000
Cost of goods sold456,000