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?

Quote:

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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 ? ? ? ?

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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

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 ? ? ? ?

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