The following are selected transactions of Shadow, Inc. Use the letters to the left of the...

The following are selected transactions of Shadow, Inc. Use the letters to the left of the following accounts to record ALL of the transactions for Shadow, Inc. (a) List the debit letter(s) first and then the credit letter(s) for ALL transactions. Indicate the amounts for the May 19 transaction and (b) Record the May 19 transaction for Mystic. (For example, the purchase of inventory on credit would be shown as follows: E, A).

A. Accounts Payable	E. Inventory
B. Accounts Receivable	F. Sales Discounts
C. Cash	G. Sales Returns and Allowances
D. Cost of Goods Sold	H. Sales Revenue

May 10 Sold and shipped to Mystic, Inc. merchandise for $5,000 ($3,000 cost), terms 2/10, n/30.

13 Mystic, Inc. returned merchandise billed at $1,000 ($600 cost ) on May 10.

19 Received a check from Mystic. Inc. for full settlement of the May 10 transaction.

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Date	Account Titles	Debit $	Credit $
May.10	Accounts receivable (B)	5,000
	Sales Revenue ( H )		5,000

	Cost of Goods Sold ( D )	3,000
	Inventory ( E )		3,000

May.13	Sales Return & Allowances (G )	1,000
	Accounts receivable (B)		1,000

	Inventory ( E )	600
	Cost of Goods Sold ( D )		600

May.19	Cash (C )	3,920
	Sales Discounts ( F ) (4,000 x 2% )	80
	Accounts receivable (B)		4,000
	( 5,000 - 1,000 )

ekkarill92 answered 2 years ago

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