Chapter 6.pdf - Chapter 6 Accounting for Merchandising...

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1 Chapter 6 – Accounting for Merchandising Businesses Review of journal entries for the perpetual inventory system in chapter 6: Merchandise Inventory ( A) XX (purchase price) Accounts Payable ( L) XX (amount due) (Purchased merchandise on credit) Freight In ( OE) XX (price charged) Accounts Payable (or Cash) ( L) XX (amount due or paid) (Received transportation charges) Accounts Payable ( L) XX (amount returned) Merchandise Inventory ( A) XX (amount returned) (Returned merchandise to supplier for credit) Accounts Payable ( L) XX (amount owed) Cash ( A) XX (amount paid) (Made payment on account to supplier) Accounts Receivable ( A) XX (amount to be received) Sales ( OE) XX (sales price) (Sold merchandise on credit) Cost of Goods Sold ( OE) XX (cost of units sold) Merchandise Inventory ( A) XX (cost of units sold) (Transferred cost of merchandise inventory sold to Cost of Goods Sold account) Freight Out Expense ( OE) XX (price charged) Cash (or Accounts Payable) ( A) XX (amount paid or due) (Paid delivery costs on goods sold) Sales Returns and Allowances ( OE) XX (price of goods returned) Accounts Receivable ( A) XX (amount credited to account) (Accepted return of merchandise from customer) Merchandise Inventory ( A) XX (cost of goods returned) Cost of Goods Sold ( OE) XX (cost of goods returned) (Transferred cost of merchandise returned to the Merchandise Inventory account) Cash ( A) XX (amount received) Accounts Receivable ( A) XX (amount settled) (Received on account from customer)
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2 Cash ( A) XX (amount net of fee) Credit Card Discount Expense ( OE) XX (fee charged) Sales ( OE) XX (sales price) (Made sales on credit card)
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