Solution-Prepare journal entries to record transactions and

Prepare journal entries to record transactions and events

Assignment Help Financial Accounting

Reference no: EM132908091

Serene Spa Sales uses the perpetual inventory system and the gross method of accounting for purchases and sales, and had the following transactions during August.

Aug

1 Sold merchandise on credit for $5,000, terms 3/10, n/30. The items sold had a cost of $3,500.

3 Purchased merchandise for cash, $2,720.

4 Purchased merchandise on credit for $2,600, terms 1/20, n/30.

5 Issued a credit memorandum for $3,000 to a customer who returned merchandise purchased July 20. The returned items had a cost of $2,010.

10 Received payment for merchandise sold August 1.

15 Received a credit memorandum from the seller for the return of defective merchandise purchased on August 4 for $600.

18 Paid freight charges of $200 for merchandise ordered last month. (FOB shipping point)

23 Paid for the merchandise purchased August 4 less the portion that was returned.

24 Sold merchandise on credit for $7,000, terms 2/10, n/30. The items had a cost of $4,900.

31 Received payment for merchandise sold on August 24.

Required:

Problem 1: Prepare journal entries to record these transactions and events

Reference no: EM132908091

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Prepare journal entries to record transactions and events

Reference no: EM132908091

Reference no: EM132908091

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