: Sold merchandise inventory on account for $ 4900​, 5​/15, ​n/30. These goods cost the company $ 1470. ​(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​ entry.)

Answer 1

To journalize the sale portion of the transaction, you would record the sale of merchandise inventory on account. Here’s how you can do it:

Journal Entry for the Sale:

1. Debit Accounts Receivable (for the amount sold on account)

   • Amount: $4,900

2. Credit Sales Revenue (for the amount of the sale)

   • Amount: $4,900

The journal entry would look like this:

Date | Account | Debit | Credit ------------------|---------------------------|-----------|----------- [Date of Sale] | Accounts Receivable | 4,900 | | Sales Revenue | | 4,900

This entry records the sale of merchandise on account, increasing the accounts receivable and recognizing the revenue from the sale.

(Note: The cost of goods sold and the corresponding inventory adjustment will be recorded in the next entry as per your instruction.)

Answer 2

Now journalize the expense related to the previous entry

Answer 3

To journalize the expense related to the previous entry, you will record the cost of goods sold (COGS) and reduce the inventory by the same amount. Here’s how to do it:

Journal Entry for Cost of Goods Sold:

1. Debit Cost of Goods Sold (for the cost of the merchandise sold)

   • Amount: $1,470

2. Credit Merchandise Inventory (to reduce the inventory for the cost of the goods sold)

   • Amount: $1,470

The journal entry would look like this:

Date | Account | Debit | Credit ------------------|---------------------------|-------------|----------- [Date of Sale] | Cost of Goods Sold | 1,470 | | Merchandise Inventory | | 1,470

This entry records the expense related to the sale, recognizing the cost of the merchandise that was sold and reducing the inventory accordingly.

Answer 4

: Paid amount owed on credit purchase of March ​5, less the return and the discount.

Answer 5

To journalize the payment of an amount owed on a credit purchase while considering a return and a discount, you need to first establish the specifics of the amounts involved:

1. Original Purchase Amount: Amount of the credit purchase made on March 5.
2. Return Amount: Amount returned from the original purchase.
3. Discount: Any discount applicable (for example, if the terms were 2/10, n/30, and the payment was made within the discount period).

Let's assume the following:

• Original Purchase Amount: $1,000
• Return Amount: $200
• Discount rate: 2%
• Amount owed after the return: $1,000 - $200 = $800
• Discount on the amount owed: 2% of $800 = $16
• Amount paid after discount: $800 - $16 = $784

Based on these assumptions, the journal entry for the payment would include:

1. Debit Accounts Payable for the amount owed before the discount.
2. Credit Cash for the amount actually paid after the return and discount.
3. Credit Purchase Discounts (or Discounts Received) for the discount amount taken.

Here’s how the journal entry would look:

Date | Account | Debit | Credit ------------------|---------------------------|-------------|----------- [Payment Date] | Accounts Payable | 800 | | Cash | | 784 | Purchase Discounts | | 16

This entry reflects:

• Reducing the Accounts Payable for the total amount owed after returns ($800).
• Paying cash for the final amount after applying the discount ($784).
• Recording the discount taken ($16).

Make adjustments based on your actual amounts or specific transaction details.

Answer 6

use Purchased $ 4600 of merchandise inventory on​ account, 2​/10​, ​n/EOM and FOB shipping point to journalize the above entry

Answer 7

To journalize the purchase of merchandise inventory on account, you will record the entry based on the purchasing transaction details provided. Here’s how to do it:

1. Purchase Amount: $4,600
2. Terms: 2/10, n/EOM (indicating a 2% discount if paid within 10 days, otherwise the net amount is due at the end of the month)
3. Shipping Terms: FOB shipping point (meaning the buyer pays for shipping)

You only need to record the purchase transaction at this point. Here's how the journal entry will look:

Journal Entry for Purchase of Merchandise Inventory:

Date | Account | Debit | Credit ------------------|---------------------------|-------------|----------- [Purchase Date] | Merchandise Inventory | 4,600 | | Accounts Payable | | 4,600

Explanation:

• Debit Merchandise Inventory: This increases the inventory asset on the balance sheet for the items purchased.
• Credit Accounts Payable: This records the liability incurred due to the purchase on account.

Note: The shipping costs will typically affect the inventory value when it's FOB shipping point, meaning you also need to account for any shipping costs in your inventory. However, if you are focusing solely on the purchase transaction itself, this entry suffices.

If you need to recognize the shipping cost separately, you would add another debit entry to the inventory account for the shipping cost and a credit entry for cash/accounts payable reflecting that shipping charge.

Answer 8

: Paid amount owed on credit purchase of March ​5, less the return and the discount.
use the above journal entry to journalize this

Answer 9

To journalize the payment of the amount owed on a credit purchase made on March 5, taking into account the return and discount, you'll need to first clarify the specifics. Assuming a previous scenario with typical amounts, let's summarize it again for clarity:

1. Total Purchase Amount on March 5: $4,600 (from your previous entry)
2. Return Amount: Assume $200 was returned.
3. Net Amount Owed After Return: $4,600 - $200 = $4,400.
4. Discount Terms: 2/10, n/EOM (2% discount).
5. Discount Taken on Payment: 2% of $4,400 = $88.
6. Final Amount Paid: $4,400 - $88 = $4,312.

Journal Entry for Payment:

Date | Account | Debit | Credit ------------------|---------------------------|-------------|----------- [Payment Date] | Accounts Payable | 4,400 | | Cash | | 4,312 | Purchase Discounts | | 88

Explanation:

• Debit Accounts Payable: This represents settling the total owed after the return, which is $4,400.
• Credit Cash: The amount received after applying the discount, which is $4,312.
• Credit Purchase Discounts: This reflects the discount taken from the total amount, which is $88.

This entry correctly accounts for the payment made on the credit purchase, factoring in the return and discount, directly addressing your request. Adjust the figures as necessary based on the actual numbers from your transactions.