[trivadi]

Apr 2. Britt received an $18,000 invoice from one of its suppliers. Terms were 2/10 n/30, FOB shipping Point. Britt paid the freight bill amounting to $2,000.

4.Britt returned $2,500 of the merchandise billed on April 2 because it was defective.

5. Britt sold $8,000 of merchandise on account, terms 3/15 n/30. The cost of the merchandise sold was $5500.

10. Britt paid the invoice dated April 2, less the return and the discount.

15. A customer returned $2,500 of merchandise sold on April 5. The cost of the returned merchandise was $1,450.

19. Britt received payment on the remaining amount due from the sale of April 5, less the return and the discount.


These are my entries. Please let me know whether they are correct.

Debit Credit

Apr. 2 Inventory 18,000
Accounts Payable 18,000
Inventory 2,000
Cash 2,000

Apr.4 Accounts Payable 2,500
Merchandise Inventory 2,500

Apr.5 Accounts Receivable 8,000
Sales Revenue 8,000

Apr.5 Cost of goods sold 5,500
Inventory 5,500

Apr.10 Accounts Payable 15,500
Cash 15190
Inventory 310


Apr.15 Sales Returns 2,500
Accounts Receivable 2500
Inventory 1,450
Cost of Goods sold 1450

Apr.19 Cash 5500
Sales discount 165
Accounts Receivable 5335

[CaptainForest]

April 2
Dr. Inventory 15,960
Dr. Freight-in Expense 2,040
Dr. AP 2,040
Cr. AP 18,000
Cr. Cash 2,000
Dr. Discount Freight-in 40

Note: You can net the 2 AP accounts. I just separated it so you can follow my logic.

Assumption: On April 12, you received all this inventory with the bill and you then paid the Freight part of the bill which was 2,000 x 1.02 = 2,040. Less the 2% discount, it cost 2,000


April 4
Correct

April 5
Correct

April 10
Total Amount 18,000 – 2,040 – 2,500 = 13,460

Dr. AP 13,460
Cr. Cash 13,196
Cr. Discounts Earned 264


April 15
Correct

April 19
Total Sales = 8,000 – 2,500 = 5,500

Dr. Cash 5,335
Dr. Sales Discount Allowed 165
Cr. AR 5,500

Discount was 3% on the 5,500, or $165