Journalize the following merchandise transactions. Mar. 1 Sold merchandise on account, $75,650 with terms 2/10, n/30. The cost of the merchandise sold was $44,450. 9 Received payment less the discount. 13 Issued a credit memo for returned merchandise that was sold for $2,700 terms n/30. The cost of the merchandise returned was $1,890.

General Journal:

Date Description Ref. Debit Credit

Mar. 1 Accounts Receivable $75,650

Sales Revenue $75,650

To record sale of merchandise on account, terms 2/10, n/30.

Mar. 1 Cost of Goods Sold $44,450

Inventory $44,450

To record the cost of goods sold under the perpetual inventory system.

Mar. 9 Cash Account $74,137

Cash Discount $1,513

Accounts Receivable $75,650

To record receipt on account less discount.

Mar. 12 Sales Returns $2,700

Accounts Receivable $2,700

To record the return of merchandise

Mar. 12 Inventory $1,890

Cost of goods sold $1,890

To record the cost of the returned merchandise.

Explanation:

Journal entries are made to show the accounts affected by each transaction. Two or more accounts are usually affected. One account receives value and is debited and the other gives value, and it is credited.

Journals remain an important accounting tool for recording initial transactions before they are posted to the General Ledger.