Question

Annie's Antiques uses a perpetual inventory system. Journalize the following sales transactions for Annie's Antiques. Explanations are not required. The company estimates sales returns at the end of each month.

Jan. 4 Sold $ 19,000 of antiques on​ account, credit terms are​ n/30. Cost of goods is $ 9,500.

Jan 8 Received a $ 100 sales return on damaged goods from the customer. Cost of goods damaged is $ 50.

Jan 13 Annie's Antiques received payment from the customer on the amount due from Jan. ​4, less the return.

Jan 20 Sold $ 5,000 of antiques on​ account, credit terms are 1​/10, ​n/45, FOB destination. Cost of goods is $ 2,500. Jan 20 Annie's Antiques paid $ 110 on freight out.

Jan 29 Received payment from the customer on the amount due from Jan. ​20, less the discount.

Answer 1

Journal Entries:

Date	Account Titles and Explanations	Debit	Credit
Jan. 4	Accounts Receivable	$19,000
	Sales Revenue		$19,000
	(To record the sale of goods on account)
	Cost of Goods Sold	$9,500
	Merchandise Inventory		$9,500
	(To record the cost of goods sold)
Jan. 8	Sales Returns and Allowances	$100
	Accounts Receivable		$100
	(To record the return of goods sold on account)
	Merchandise Inventory	$50
	Cost of Goods Sold		$50
	(To record the return of the cost of goods sold)
Jan. 13	Cash	$18,900
	Accounts Receivable ($19,000 - $100)		$18,900
	(To record the collection of cash from the credit customers)
Jan. 20	Accounts Receivable	$5,000
	Sales Revenue		$5,000
	(To record the sale of goods on account)
	Cost of Goods Sold	$2,500
	Merchandise Inventory		$2,500
	(To record the cost of goods sold)
Jan. 20	Freight Charges	$110
	Cash		$110
	(To record the payment of freight charges by cash)
Jan. 29	Cash	$4,950
	Accounts Receivable ($5,000 - [$5,000*1/100])		$4,950
	(To record the collection of cash from the credit customers less discount)