Ask Experts Questions for FREE Help !
Ask
    KrystalLea's Avatar
    KrystalLea Posts: 16, Reputation: 2
    New Member
    		  
    #1

    Nov 27, 2007, 10:40 AM
    Accounting 2
    Please help!!
    What would the transactions be.. .

    1/23 Sold merchandise on account to UTS Inc. for $12,000 terms 2/10, N30. The gross rate on this sale was 40%

    1/24 Merchandise sold on 1/23 in the amount of $2,000 was returned for credit and returned to inventory.


    I think the first entry is.. .

    1/23 Cash 12,000
    Sales 12,000
    1/23 Cost of goods sold 7,200
    Merchandise 7,200

    Please correct me if this is wrong ?
    But what would the entry for the 24th be?
    qcmar24's Avatar
    qcmar24 Posts: 65, Reputation: 3
    Junior Member
    		  
    #2

    Nov 27, 2007, 01:26 PM
    Quote Originally Posted by KrystalLea
    Please help !!!
    What would the transactions be . . .

    1/23 Sold merchandise on account to UTS Inc. for $12,000 terms 2/10, N30. The gross rate on this sale was 40%

    1/24 Merchandise sold on 1/23 in the amount of $2,000 was returned for credit and returned to inventory.


    I think the first entry is . . .

    1/23 Cash 12,000
    Sales 12,000
    1/23 Cost of goods sold 7,200
    Merchandise 7,200

    Please correct me if this is wrong ?
    But what would the entry for the 24th be ? ? ? ?
    For 1/23 the entries are
    Dr.Accounts receivable... 12,000
    Cr.Sales... 12,000
    ---------------------------------------
    Dr.Cost of goods sold... 7,200
    Cr.Merchandise inventory... 7,200
    ------------------------------------------
    For 1/24 the entries are
    Dr.Sales returns and allowance... 2,000
    Cr.Accounts receivable... 2,000
    ------------------------------------------
    Dr.Merchandise Inventory... 1,200
    Cr.Cost of goods sold... 1,200

    Remember on account means on credit
    KrystalLea's Avatar
    KrystalLea Posts: 16, Reputation: 2
    New Member
    		  
    #3

    Nov 28, 2007, 01:36 PM
    Thank You!

    Quote Originally Posted by KrystalLea
    Please help !!!
    What would the transactions be . . .

    1/23 Sold merchandise on account to UTS Inc. for $12,000 terms 2/10, N30. The gross rate on this sale was 40%

    1/24 Merchandise sold on 1/23 in the amount of $2,000 was returned for credit and returned to inventory.


    I think the first entry is . . .

    1/23 Cash 12,000
    Sales 12,000
    1/23 Cost of goods sold 7,200
    Merchandise 7,200

    Please correct me if this is wrong ?
    But what would the entry for the 24th be ? ? ? ?
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Accounting steps for the accounting cycle [ 2 Answers ]

I think I wrote all the steps wrong can someone correct them for me thanks. List the following steps of the accounting cycle in their proper order: a) Preparing the post-closing trial balance.9 b) Posting the journal entries c) Journalizing and posting adjusting entries d) Preparing the...

Accounting [ 1 Answers ]

I have an assignment due today and, I am lost on this. Can someone please help me? Where can I find information on how to creat a balance sheet

Accounting [ 1 Answers ]

If my assests increase by $15,000 and my libilities $6,000 during a period,will my owers equity increase or decrease by 9000?

View more questions Search