Sales Transactions

Journalize the following merchandise transactions, using the net method under a perpetual inventory system.

a. Sold merchandise on account, $19,150 with terms 2/10, n/30. The cost of the goods sold was $11,490. If an amount box does not require an entry, leave it blank.

	Accounts Receivable
	Sales
	Cost of Goods Sold
	Inventory

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(a) When the perpetual inventory system is used, two entries are recorded each time a sale is made. In the first entry, accounts receivable and the sale are recorded, less the discount. A second entry records the cost of the merchandise sold and the reduction of inventory on hand.

b. Received payment less the discount. If an amount box does not require an entry, leave it blank.

	Cash
	Accounts Receivable