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Kramer Industries sells to wholesalers. Customers must pay within 15 days or at the point of sale using a credit card. Kramer?'s cost of goods sold is 30
30?% of sales. The company had the following selected transactions during March
March?:
Kramer Industries sells to wholesalers. Customers must pay within 15 days or at the point of sale using a credit card. Kramer's cost of goods sold is 30% of sales. The company had the following selected transactions during March: 0 (Click the icon to view the transactions) Read the muirements. Requirement 1. Record Kramer's transactions, including the cost of goods sold entry for each sale. (Use the gross method to record the sales transactions. Record debits rst, then credits. Exclude explanations from any journal entries.) March 3: Sold $13,000 of merchandise to Weiden Company on account. Do not record the cost of goods sold entry yet. We will do that in the next step. Journal Entry Date Accounts Debit Credit Mar 3 Accounts ReceivableWeiden 13000 Sales Revenue 13000 Now record the cost of goods sold for the sale of merchandise on March 3. Journal Entry Date Accounts Debit Credit Mar 3 Cost of Goods Sold 3900 Inventory 3900 March 4: Sold $1,800 of merchandise to Yednak Corp., who paid by credit card. The credit card company charges Kramer a fee of 2% on credit card sales, Do not record the cost of goods sold entry yet. We will do that in the next step, Journal Entry Date Accounts Debit Credit Mar 4 Cash 1764 Credit Card Discount Expense 36 Sales Revenue 1800 Now record the cost of goods sold for the sale of merchandise on March 4. Journal Entry Date Accounts Debit Credit Mar 4 Cost of Goods Sold 540 Inventory 540 Kramer lndustries sells to wholesalers. Customers must pay within 15 days or at the point of sale using a credit card. Kramer cost of goods sold is 30% of sales. The company had the following selected transactions during March: 0 (Click the icon to view the transactions.) Read the @uirements. March 5: Weiden Company returned $100 of the merchandise from March 3. Do not record the inventory entry yet. We will do that in the next step. Journal Entry Date Accounts Deblt Credit Mar 5 Sales Refunds Payable 100 Accounts ReceivableWeiden 100 Now record the inventory entry for the return of merchandise on March 5. Journal Entry Date Accounts Debit Credit Mar 5 Inventory 100 Inventory Returns Estimated 100 March 7: Sold $400 of merchandise to Mable, Inc., on account. Do not record the cost of goods sold entry yet. We will do that in the next step. Journal Entry Date Accounts Debit Credit Mar 7 Accounts ReceivableMable 400 Sales Revenue 400 Now record the cost of goods sold for the sale of merchandise on March 7. Journal Entry Date Accounts Debit Credit Mar 7 Cost of Goods Sold 120 Inventory 120 March 15: Weiden Company paid the balance of what it owed for the purchase on March 3. Journal Entry Date Accounts Debit Credit Mar 15 Cash 13000 Accounts Receivable-Weiden 13000 March 19: Sold $26,000 of merchandise to Zuber Co. on account. Do not record the cost of goods sold entry yet. We will do that in the next step. Journal Entry Date Accounts Debit Credit Mar 19 Accounts Receivable-Zuber 26000 Sales Revenue 26000Now record the cost of goods sold for the sale of merchandise on March 19. Journal Entry Date Accounts Debit Credit Mar 19 Cost of Goods Sold 7800 Inventory 7800 March 21: Zuber reported that some of the merchandise received was scratched and returned $900 worth of merchandise to Kramer. Do not record the inventory entry yet. We will do that in the next step. Journal Entry Date Accounts Debit Credit Mar 21 Sales Refunds Payable 900 Accounts ReceivableZuber 900 Now record the inventory entry for the return of merchandise on March 21. Journal Entry Date Accounts Debit Credit Mar 21 Inventory 900 Inventory Returns Estimated 900' __l __l March 23: Sold $33,000 of merchandise to Niskas Co. on account. Do not record the cost of goods sold entry yet. We will do that in the next step. Journal Entry Date Accounts Debit Credit Mar 23 Accounts ReceivableNiskas 33000 I Sales Revenue 33000 Now record the cost of goods sold for the sale of merchandise on March 23. Journal Entry Date Accounts Debit Credit Mar 23 Cost of Goods Sold 9900 Inventory 9900 March 25: Zuber paid the balance of what it owed for the purchase on March 19. Journal Entry Date Accounts Debit Credit Mar 25 Cash 26000 Accounts Receivable-Zuber 26000March 31: Kramer made the adjusting entries for the month to accrue for estimated future returns. Kramer estimates that 3% of total sales will be returned. First, prepare the entry to accrue for the estimated sales returns. Do not record the cost of goods sold entry yet. We will do that in the next step. Journal Entry Date Accounts Debit Credit Mar 31 lSales Returns and Allowances 2226 I Inventory Returns Estimated 2226 | | | | Now record the cost of goods sold entry for the estimated future returns. (Round your answer to the nearest whole dollar.) Journal Entry Date Accounts Debit Credit Mar 31 |Inventory 668 | Cost of Goods Sold 668 Requirement 2. Calculate the gross sales revenue for the month. The gross sales revenue for the month is $ 73200 . Accounts Receivable-Mable rie Accounts Receivable-Niskas ic Accounts Receivable-Weiden ire Accounts Receivable-Yednak Accounts Receivable-Zuber Allowance for Uncollectible Accounts 1. Cash S $1 Cost of Goods Sold Inventory Inventory Returns Estimated Sales Discounts Sales Refunds Payable Sales Returns and Allowanceso More Info - March 5 March 7 March 15 March 19 March 21 March 23 March 25 March 31 Sold $13,000 of merchandise to Weiden Company on account. Sold $1,800 of merchandise to Yednak Corp., who paid by credit card. The credit card company charges Kramer a fee of 2% on credit card sales. Weiden Company returned $100 of the merchandise from March 3. Sold $400 of merchandise to Mable, Inc., on account. Weiden Company paid the balance of what it owed for the purchase on March 3. Sold $26,000 of merchandise to Zuber Co. on account. Zuber reported that some of the merchandise received was scratched and returned $900 worth of merchandise to Kramer. Sold $33,000 of merchandise to Niskas Co. on account. Zuber paid the balance of what it owed for the purchase on March 19. Kramer made the adjusting entries for the month to accrue for estimated future returns. Kramer estimates that 3% of total sales will be returned
