Ask Question
18 December, 14:28

Apr. 1 sold merchandise for $3,000, with credit terms n/30; invoice dated april 1. the cost of the merchandise is $1,800. apr. 4 the customer in the april 1 sale returned $300 of merchandise for full credit. the merchandise, which had cost $180, is returned to inventory. apr. 8 sold merchandise for $1,000, with credit terms of 1/10, n/30; invoice dated april 8. cost of the merchandise is $700. apr. 11 received payment for the amount due from the april 1 sale less the return on april 4.

+1
Answers (1)
  1. 18 December, 18:28
    0
    The Journal Entry is shown below:-

    April 1

    Account receivable Dr, $3,000

    To Sales revenue $3,000

    (Being the sales on account is recorded)

    Cost of goods sold Dr, $1,800

    To Merchandise inventory $1800

    (Being cost of goods sold is recorded)

    April 4

    Sales return and allowances Dr, $300

    To Accounts receivable $300

    (Being merchandise returned is recorded)

    Merchandise inventory Dr, $180

    To Cost of goods sold $180

    (Being cost of merchandise returned is recorded)

    April 8

    Accounts receivable Dr, $1,000

    Sales revenue $1,000

    (Being sales on account is recorded)

    Cost of goods sold Dr, $700

    Merchandise inventory $700

    (Being cost of goods sold is recorded)

    April 11

    Cash $2,700

    Accounts receivable $2,700

    (Being collection on account is recorded)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Apr. 1 sold merchandise for $3,000, with credit terms n/30; invoice dated april 1. the cost of the merchandise is $1,800. apr. 4 the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers