Question

In: Accounting

record the following transactions on the books of cullumber company. record the transactions in the books of cullumber in a chronological order.

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.

Solutions

Expert Solution

 

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

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