question archive Journalize the following sales transactions for New2U Sportswear
Journalize the following sales transactions for New2U Sportswear
Subject:BusinessPrice: Bought3
Journalize the following sales transactions for New2U Sportswear. Explanations are not required. Jan. 1 New20 sold $67,000 of women's sportswear on account, credit terms of 2/10, n/60. Cost of goods is $37,000. 5 New2U received a $2,500 sales return on damaged goods from the customer. Cost of goods damaged is $1,250. 10 New2U 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 expl Jan. 1: New20 sold $67,000 of women's sportswear on account, credit terms of 2/10, n/60 Cost of goods is $37,000 Begin by proparing the entry to joumalize the sale portion of the transaction. Do not record the expense related to the sale. Wo will do that in the following step. Accounts Credit Date Debit Jan 1 Now journalize the expense related to the January 1 sale—Cost of goods, $37,000. Date Accounts Debit Credit Jan. 1 Jan 5: Now20 received a $2,500 sales return on damaged goods from the customer Cost of goods damaged 5 51.250. 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 top Date Accounts Debit Credit Jan 5 Die Now prepare the entry to update the Merchandise Inventory account for the cost of the returned merchandise—Cost of goods returned, S1.250. Accounts Date Debit Credit Jan. 5 Jan. 10: New2U receives payment from the customer on the amount due, less the return and discount. Date Accounts Debit Credit
