Journalize the following merchandise transactions. The company uses the perpetual inventory system.

a. Sold merchandise on account, $17,300, with terms 2/10, net 30. The cost of the goods sold was $12,600.

Sale Accounts Receivable

Cost of Goods Sold

Cost Inventory

Cash

b. Received payment within the discount period.

Sales

Accounts Receivable

Are these categories and $ amounts correct?

a.

Accounts Receivable $17,300 (debit)

Cost of Goods Sold $12,600 (debit)

Sales Revenue $17,300 (credit)

Inventory $12,600 (credit)

b.

Cash $15,916 (debit)

Accounts Receivable $15,916 (credit)

Explanation:

The Perpetual Inventory system records the cost of inventory after every sale.

a. Sale of Sold merchandise on account

Recognize the Revenue and Cost of Sale as follows:

J1

Accounts Receivable $17,300 (debit)

Sales Revenue $17,300 (credit)

J2

Cost of Sales $12,600 (debit)

Merchandise $12,600 (credit)

b. Received payment within the discount period

Recognize the Cash receipts to the extend of amount paid less cash discount of 2%

Cash $15,916 (debit)

Accounts Receivable $15,916 (credit)

Cash Receipt = $17,300 * 92% = $15,916