Office Supplies, Inc. uses a perpetual inventory system. Journalize the following sales transactions for this company. Explanations are not required
July 3 Sold $15,400 of merchandise on account, credit terms are 2/10, n/30
Cost of goods is $9,300.
July 7 Received a $750 sales return from the customer. Cost of the goods is $435.
July 12 Office Supplies receives payment for the customer for the amount due from the July 3 sale.
What will be an ideal response
Date Accounts and Explanation Debit Credit
Jul. 3 Accounts Receivable 15,400
Sales Revenue 15,400
Cost of Goods Sold 9,300
Merchandise Inventory 9,300
Jul. 7 Sales Returns and Allowances 750
Accounts Receivable 750
Merchandise Inventory 435
Cost of Goods Sold 435
Jul. 12 Cash ($14,650 âˆ' $293 ) 14,357
Sales Discounts ($14,650 x 0.02 ) 293
Accounts Receivable ($15,400 âˆ' $750 ) 14,650
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The income statement columns in the worksheet show that debits are equal to $55,800 and credits are $62,705. What does this information mean to the accountant?
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