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29 August, 14:50

Presented here are selected transactions for the Leiss Company during April. Leiss uses the perpetual inventory system.

April 1 Sold merchandise to Mann Company for $5,500, terms 2/10, n/30. The merchandise sold had a cost of $2,500.

April 2 Purchased merchandise from Wild Corporation for $9,000, terms 1/10, n/30.

April 4 Purchased merchandise from Ryan Company for $1,000, n/30.

April 10 Received payment from Mann Company for purchase of April 1 less appropriate discount.

April 11 Paid Wild Corporation for April 2 purchase.

Journalize the April transactions for Leiss Company.

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  1. 29 August, 17:39
    0
    April 1

    J1

    Trade Receivable - Mann Company $5,500 (debit)

    Revenue $5,500 (credit)

    J2

    Cost of Goods Sold $2,500 (debit)

    Merchandise $2,500 (credit)

    April 2

    Merchandise $9,000 (debit)

    Trade Payable - Wild Corporation $9,000 (credit)

    April 4

    Merchandise $1,000 (debit)

    Trade Payable - Ryan Company $1,000 (credit)

    April 10

    J1

    Discount Allowed $110 (debit)

    Trade Receivable - Mann Company $110 (credit)

    J2

    Cash $5,390 (debit)

    Trade Receivable - Mann Company $5,390 (credit)

    April 11

    Trade Payable - Wild Corporation $9,000 (debit)

    Cash $9,000 (credit)

    Explanation:

    Note : Leiss uses the perpetual inventory system

    Therefore,

    Recognize the Cost of Goods Sold with each sale that is made.
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