# 21 issued a 200 credit memorandum to art co for an

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21 Issued a \$200 credit memorandum to Art Co. for an allowance on goods sold on July 19. 24 Paid Leight Co. the balance due after deducting the discount. 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount. 31 Sold merchandise that cost \$4,800 to Creek Co. for \$7,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Date General Journal Debit Credit 16-Jul Accounts payable—Boden 6,000 1-Jul Merchandise inventory 6,000 Merchandise inventory 60 Accounts payable—Boden 6,000 Cash 5,940 2-Jul Accounts receivable—Creek 900 19-Jul Accounts receivable—Art 1,200 Sales 900 Sales 1,200 2-Jul Cost of goods sold 500 19-Jul Cost of goods sold 800 Merchandise inventory 500 Merchandise inventory 800 3-Jul Merchandise inventory 125 21-Jul Sales returns and allowances 200 Cash 125 Accounts receivable—Art 200 8-Jul Cash 1,700 24-Jul Accounts payable—Leight 2,000 Sales 1,700 Merchandise inventory 40 Cash 1,960 8-Jul Cost of goods sold 1,300 Merchandise inventory 1,300 30-Jul Cash 980 Sales discounts 20 9-Jul Merchandise inventory 2,200 Accounts receivable—Art 1,000 Accounts payable—Leight 2,200 31-Jul Accounts receivable—Creek 7,000 11-Jul Accounts payable—Leight 200 Sales 7,000 Merchandise inventory 200 31-Jul Cost of goods sold 4,800 12-Jul Cash 882 Merchandise inventory 4,800 Sales discounts 18 Accounts receivable—Creek 900
Explanation: Jul y 12 Sales Discounts (2%) = \$18 16 Merchandise inventory (1%) = \$60 24 Merchandise Inventory (2% × \$2,000) = \$40 30 Sales Discounts [(\$1,200 – \$200) × 0.02] = \$20