Question

Record the following transactions on the books of cullumber co (omit cost of goods sold entries) (credit account titles are automatically indented when amount is entered.Do not indent manually).

(a) on july 1,cohen co sold merchandise on account to tracy inc for $23,400, terms 2/10,n/30

(b)on july 8, tracy inc returned merchandise worth $2,400 to cohen co.

(c)on july 11,tracy inc paid for the merchandise.

Answer 1

 

Date	Account Titles & Explanations	Debits$	Credit$
01-july	Account receivable A/C	23,400
	To Sales Revenue A/C (To record merchandise sold on account to tracy inc)		23,400
08-July	Sales returns & Allowance A/C	2,400
	To Accounts Receivable A/C  (To record merchandise returned to cohen co)		2,400
11 -July	Cash A/C (21,000 - 420)	20,580
	Sales discounts A/C (23,400 -2,400 = 21,000 x 2 /100)	420
	To Accounts Receivable A/c  To record amount paid for merchandise to tracy inc)		21,000

answer to the above question clearly shown in the expalantion option. record the transaction in the books of cullumber co in chronological order