Question

1. Ceres Computer Sales uses the perpetual inventory system and had the following transactions during December.

Dec. 1 Ceres sold merchandise to ABC, Inc. on credit for $8,500, terms 1/10, n/30. The items sold had a cost of $ 4,200.

Dec. 6 Ceres purchased merchandise from Jones, Inc. on credit for $6,000, terms 2/10, n/30.

Dec. 7 ABC, Inc. returned $1,100 of goods purchased on Dec. 1 (original cost of the goods to ABC is $375).

Required:
Prepare the general journal entries to record these transactions (from Ceres’ point of view).

Dec. 11 ABC, Inc. pays amount owed from purchase on Dec. 1 (within discount period).

Dec. 12 Ceres receives an allowance of $300 for goods purchased on Dec. 6.

Dec. 14 Ceres pays for goods purchased on Dec. 6 (within discount period).

Answer 1

Answer :-

Date	Account titles	Debit	Credit
1-Dec	Accounts receivable	$8,500
	Sales revenue		$8,500
1-Dec	Cost of goods sold	$4,200
	Merchandise inventory		$4,200
6-Dec	Merchandise inventory	$6,000
	Accounts payble		$6,000
7-Dec	Sales returns allowences	$1,100
	Accounts receivable		$1,100
7-Dec	Merchandise inventory	$375
	Cost of goods sold		$375
11-Dec	Cash ($7,400-$74)	$7,326
	Sales discounts($7,400*1%)	$74
	Accounts receivable($8,500-$1,100)		$7,400
12-Dec	Accounts payable	$300
	Purchase returns and allowence		$300
14-Dec	Accounts payable ($6,000-$300)	$5,700
	Purchase discount ($5,700*2%)		$114
	Merchandise inventory ($5,700-$114)		$5,586