Apr
Subject:AccountingPrice: Bought3
Apr. 5: Mike received a $5,000 sales return on damaged goods from the customer. Cost of goods damaged is $2,500. Start by preparing the entry to record the sales retum and decrease the receivable. Do not update the Merchandise Inventory with this entry. We will do that in the following step. Date Accounts Debit Credit Apr. 5 Now prepare the entry to update the Merchandise Inventory account for the cost of the returned merchandise--Cost of goods returned, $2,500. Date Accounts Debit Credit Apr. 5 Apr. 10: Mike receives payment from the customer on the amount due, less the return and discount. Date Accounts Debit Credit Apr. 10 Journalize the following sales transactions for Mike Sportswear. Explanations are not required. Apr. 1 Mike sold $70,000 of women's sportswear on account, credit terms of 1/10, n/60. Cost of goods is $40,000. 5 Mike received a $5,000 sales return on damaged goods from the customer. Cost of goods damaged is $2,500. 10 Mike receives payment from the customer on the amount due, less the return and discount Journalize the sales transactions. Explanations are not required. (Assume the company uses a perpetual inventory system. Record debits first, then credits. Exclude explanations from journal entries.) Apr. 1: Mike sold $70,000 of women's sportswear on account, credit terms of 1/10, n/60. Cost of goods is $40,000. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step. Date Accounts Debit Credit Apr. 1 Now journalize the expense related to the April 1 sale-Cost of goods, $40,000. Date Accounts Debit Credit Apr. 1
