DBAACC1010_Principles of Accounting I_HWTemplates_M3_M5M6.xlsx

Baker College
ACC 1010 Principles of Accounting I
Problem 5-1
Problem set A
On the seller's books
General Journal
Description Debit Credit
8-Mar Accounts receivable 14,000 8-Mar
Sales revenue 14,000
sold merchandise
8-Mar cost of goods sold 9,600 10-Mar
Inventory 9,600
sold merch with terms of 2/10, n/30
12-Mar Sales returns and allowances 2,000 12-Mar
Accounts receivable 2,000
Merchandise return
12-Mar 17-Mar
Inventory 1,600
Cost of goods sold 1,600
Merchandise return
17-Mar Cash 11,760 20-Mar
sales discount (12000x 2 %) 240
Accounts receivable (14000-2000) 12,000
Recieved full payment from march 8 sale
20-Mar Sales returns and allowances 800
sales discount 16
Cash 784
Returmed goods and issued a check
reference reference

20-Mar Inventory 600
Cost of goods sold 600
Returmed goods and issued a check

On the buyer's books
General Journal
Description Debit Credit
Inventory 14,000
Accounts payable 14,000
bought merchandise
Inventory 500
Cash 500
Paid freight charges
Accounts payable 2,000
inventory 2,000
Returned merchandise
Accounts payable 12,000
Inventory 240
Cash 11,760
Paid full amount from march 8 purchase
cash 784
inventoy 784
Returned goods