a.	Sold merchandise on account to CaneCane Co., invoice no. 10, $ 42. The cost of the merchandise was $ 25.
b.	Received check from StevenSteven Co., $ 500, less 22% discount.
c.	Cash sales, $ 96. The cost of merchandise was $ 58.
d.	Issued credit memorandum no. 2 to CaneCane Co. for defective merchandise, $ 15. The cost of the merchandise was $ 13$.

Journalize the following transactions assuming a perpetual inventory system:

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(Record debits first, then credits. Exclude explanations from journal entries.)

a. Sold merchandise on account to

CaneCane

Co., invoice no. 10,

$ 42$42.

The cost of the merchandise was

$ 25$25.

Begin by recording the sale portion of the entry. Do not record the cost of the sale yet. We will do that in the following step.

Journal Entry
		Account Titles	PR	Dr.	Cr.
	a1.

Record the cost of the sale.

Journal Entry
		Account Titles	PR	Dr.	Cr.
	a2.

b. Received check from

StevenSteven

Co.,

$ 500$500,

less

22%

discount. (Assume

$ 500$500

was the gross amount of the sale.)

Journal Entry
		Account Titles	PR	Dr.	Cr.
	b.

c. Cash sales,

$ 96$96.

The cost of merchandise was

$ 58$58.

Begin by recording the sale portion of the entry. Do not record the cost of the sale yet. We will do that in the following step.

Journal Entry
		Account Titles	PR	Dr.	Cr.
	c1.

Record the cost of the sale.

Journal Entry
		Account Titles	PR	Dr.	Cr.
	c2.

d. Issued credit memorandum no. 2 to

CaneCane

Co. for defective merchandise,

$ 15$15.

The cost of the merchandise was

$ 13$13.

Begin by recording the receivable portion of the adjustment. Do not yet adjust for the cost of the merchandise returned. We will do that in the following step.

Journal Entry
		Account Titles	PR	Dr.	Cr.
	d1.

Record the entry to adjust for the cost of the merchandise returned.

Journal Entry
		Account Titles	PR	Dr.	Cr.
	d2.