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Question 6, R1 Journalize Southams.coms

October transactions how did they get $36140 in credit for accounts

receivable?


Journalize Southam's October 2010 sales transactions. 3. Calculate net sales revenue for October 2010. 4. Calculate gross profit for October 2010. Suppose Southam.com sells 2,000 books on account for $19 each (cost of these books is $22,800) on October 10, 2010. One hundred of these books (cost $1,140) were damaged in shipment, so Southam.com later received the damaged goods as sales returns on October 13, 2010. Then the customer paid the balance on October 22, 2010. Credit terms offered to the customer were 2/20, net 45. 

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1 Date
Accounts & Explantion
Debit
Credit
2010
Oct 10
Accounts Receivable
$38,000
Sales Revenue
$38,000
(To record credit sales)
Oct 10
Cost of goods sold
$22,800
Merchandise Inventory
$22,800...

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