Question
Oldman Company uses a perpetual inventory system. Prepare the necessary journal entries for October to record the following transactions for Oldman as a seller recognizing
- Oldman Company uses a perpetual inventory system. Prepare the necessary journal entries for October to record the following transactions for Oldman as a seller recognizing Cost of Goods sold using the perpetual inventory approach.
Oct 1 Oldman sells $54,000 of merchandise, terms 1/10, n/30. The merchandise cost $30,000.
Oct 5 The customer in (a) returned $5,000 of merchandise to Oldman. The merchandise returned cost $3,500. The goods were returned to inventory for resale.
Oct 9 Oldman received the balance due within the discount period.
| Date | Account | Debit | Credit |
| Oct 1 | Account received | 54,000 |
|
|
| Revenue of sale |
| 54,000 |
|
| Cost of good sold | 30,000 |
|
|
| Inventory |
| 30,000 |
| Oct 5 | Allowance and sales return | 5,000 |
|
|
| Account received |
| 5,000 |
|
| Inventory | 3,000 |
|
|
| Cost of goods sold |
| 3,000 |
| Oct 9 | Cash | 44,100 |
|
|
| Discount on sales | 4,900 |
|
|
| Account receivable |
| 49,000 |
Can you check my answer please
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Auditing Cases An Interactive Learning Approach
Authors: Steven M Glover, Douglas F Prawitt
4th Edition
0132423502, 978-0132423502
