Question
The Adam Company uses the perpetual inventory system to record its merchandising transactions. At the beginning of 2019 the company had the following selected account
The Adam Company uses the perpetual inventory system to record its merchandising transactions. At the beginning of 2019 the company had the following selected account balances:
Debit Credit
Merchandise inventory $1,000,000
Cost of goods sold 200,000
Sales 2,000,000
Accounts receivable 800,000
Prepare journal entries for the following transactions that the Company completed during January:
|
| Account | Debit | Credit |
| Jan 6 | Collected the 800,000 account receivable balance with terms 2/10 net 30 within the discount period. | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Jan 7 | Paid within the discount period 60% of the merchandise that was purchased for 1,000,000 with credit terms 2/10 net 30 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Jan 8 | Sold for 2,000,000 to Aisha Company 4/10 net 30 with cost 500,000 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Jan 9 | Paid within the discount period 40% of the merchandise that was purchased for 1,000,000 with credit terms 2/10 net 30 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Jan 12 | Collected 65% of the sale to Aisha Company terms 4/10 net 30 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Jan 17 | Collected the remaining 35% of the sale to Aisha Company terms 4/10 net 30 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started