Question
[The following information applies to the questions displayed below.] At the beginning of July, CD City has a balance in inventory of $2,400. The following
[The following information applies to the questions displayed below.] At the beginning of July, CD City has a balance in inventory of $2,400. The following transactions occur during the month of July.
July | 3 | Purchase CDs on account from Wholesale Music for $1,300, terms 1/10, n/30. | ||
July | 4 | Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $120. | ||
July | 9 | Return incorrectly ordered CDs to Wholesale Music and receive credit, $200. | ||
July | 11 | Pay Wholesale Music in full. | ||
July | 12 | Sell CDs to customers on account, $3,800, that had a cost of $2,000. | ||
July | 15 | Receive full payment from customers related to the sale on July 12. | ||
July | 18 | Purchase CDs on account from Music Supply for $2,100, terms 1/10, n/30. | ||
July | 22 | Sell CDs to customers for cash, $3,200, that had a cost of $1,500. | ||
July | 28 | Return CDs to Music Supply and receive credit of $100. | ||
July | 30 | Pay Music Supply in full. |
Requirements of Journal Entry worksheet:
a) Record purchase of CDs on account from Wholesale Music for $1,300, terms 1/10, n/30.
b) Record payment of cash for freight charges related to the July 3 purchase from Wholesale Music, $120.
c) Record return of incorrectly ordered CDs to Wholesale Music and receive credit, $200.
d) Record payment to Wholesale Music in full.
e) Sell CDs to customers on account, $3,800, that had a cost of $2,000. Record the sale of inventory on account.
f) Sell CDs to customers on account, $3,800, that had a cost of $2,000. Record the cost of inventory sold.
g) Record receipt of full payment from customers related to the sale on July 12.
h) Record purchase of CDs onaccount from Music Supply for $2,100, terms 1/10, n/30.
i) Sell CDs to customers for cash, $3,200, that had a cost of $1,500. Record the sale of inventory for cash.
j) Sell CDs to customers for cash, $3,200, that had a cost of $1,500. Record the cost of inventory sold.
k) Record return of CDs to Music Supply and receive credit of $100.
l) Record payment of Music Supply in full.
Question: Create a Journal Entry worksheet with the requirements of a-l.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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