Now prepare the entry to update the merchandise

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Now prepare the entry to update the Merchandise Inventory account for the cost of the returned merchandise.
Question # 6 S5-6Suppose Amazing.com sells 2,000 books on account for $19 each(cost of these books is $22,800) on October 10, 2018 to Express Learning. One hundred of these books(cost $1,140) were damaged in shipment, so Amazing.com later received the damaged goods from Express Learning as sales returns on October 13, 2018. (Assume both companies use a perpetual inventory system and that sales are recorded at the netamount.)Requirement 1. Journalize Express Learning's October 2018 transactions. (Record debits first, then credits. Exclude explanations from journal entries.)Oct. 10: Express Learning purchased 2,000 books on account for $19 each from Amazing.com.
**To Solve: 2000 x 19 = 38,000Oct. 13: Express Learning returned one hundred books damaged in shipment.DateAccountsDebitCreditOct. 13Accounts Payable1,900Merchandise Inventory1,900** To Solve: 100 x 19 = 1,900Requirement 2. Journalize Amazing.com's October 2018 transactions. The company estimates sales returns at the end of each month. (Record debits first, then credits. Exclude explanations from journal entries.)Oct. 10: The sale of 2,000 books on account for $19 each (cost of these books is $22,800) to Express Learning. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step.DateAccountsDebitCreditOct. 10Accounts Receivable38,000Sales Revenue38,000Now journalize the expense related to the October 10 sale.DateAccountsDebitCreditOct. 10Cost of Goods Sold22,800Merchandise Inventory22,800Oct. 13: Express Learning returned one hundred books (cost $1,140) damaged in shipment.Start by preparing the entry to record the sales return. Do not update the Merchandise Inventory with this entry. We will do that in the following step.DateAccountsDebitCreditOct. 13Refunds Payable1,900Accounts Receivable1,900
Now prepare the entry to update the Merchandise Inventory account for the cost of the returned merchandise.DateAccountsDebitCreditOct. 13Merchandise Inventory1,140Estimated Returns Inventory1,140Question # 7 S5-9Data TableCost of Goods Sold$380,000 Accumulated Depreciation--Building$48,000Accounts Payable20,000Cash45,000Rent Expense21,000Sales Revenue705,000Building116,000Depreciation Expense--Building16,000Rockwall, Capital212,000Rockwall, Withdrawals55,000Merchandise Inventory257,000Interest Revenue6,000Notes Receivable31,000Requirements1. Journalize the required closing entries for Rockwall.2. Determine the ending balance in the capital account.Requirement 1.Journalize the required closing entries for Rockwall. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Start by closing the revenue accounts forthe period. Do not close expenses; we will do this in the next step.

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