. On March 15th Monroe Sales sells $9,525.00 on account to Garrison Brewer with terms of 2/10, n/30. The cost of merchandise sold was $6,905.00.
(a) Journalize the sale and the recognition of the cost of the sale.
(b) On March 20th a $125.00 credit memo is given to Garrison Brewer due to merchandise that was the wrong color. Journalize this event. The cost of the returned merchandise was $65.
(c) On March 25th Garrison Brewer submits payment in full. Journalize this event.
Darshita Changed status to publish February 17, 2020
Answer:
(A)
| Accounts Receivable – Garrison Brewer | 9525 | |
| Sales | 9525 | |
| Cost of Merchandise Sold | 6905 | |
| Merchandise Inventory | 6905 |
(B)
| Sales Returns and Allowances | 125 | |
| Accounts Receivable – Garrison Brewer | 125 | |
| Merchandise Inventory | 65 | |
| Cost of Merchandise Sold | 65 | |
(C)
| Cash | 9212 | |
| Sales Discounts | 188 | |
| Accounts Receivable – Garrison Brewer | 9400 |
Working
| Original Invoice | $9,525.00 |
| Less Sales Returns and Allowances | 125.00 |
| Adjusted Balance Due | 9400 |
| Sales Discount Rate | 2% |
| Sales Discount | 188 |
| Cash Due | $9,212.00 |
Darshita Changed status to publish February 17, 2020
