Question

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Dec.	4		Sold merchandise for $ 450 cash. The cost of merchandise was $ 350.
	9		Purchased merchandise from Ree Co. on​ account, $3,300​, F.O.B. shipping point​ (buyer pays​ freight); terms 22​/10, ​n/30. Freight to be paid on December 20.
	20		Paid freight on December 9​ purchase, $ 110.

Journalize the following transactions. Assume the perpetual inventory system.

​(Click the icon to view the​ transactions.)

​(Record debits​ first, then credits. Exclude explanations from journal​ entries.)

December

​4: Sold merchandise for

$ 450

cash. The cost of merchandise was

$ 350.

Begin by journalizing the revenue from the sale of merchandise. Do not record the cost of the sale yet. We will do that in the following step.

Journal Entry
Date		Accounts	PR	Dr.	Cr.
Dec.	4

Now journalize the cost of the merchandise sold.

Journal Entry
Date		Accounts	PR	Dr.	Cr.
Dec.	4

December

​9: Purchased merchandise from

Ree

Co. on​ account,

$3,300​,

F.O.B. shipping point​ (buyer pays​ freight); terms

22​/10,

​n/30. Freight to be paid on

December

20.

Journal Entry
Date		Accounts	PR	Dr.	Cr.
Dec.	9

December

​20: Paid freight on

December

9​ purchase,

$ 110.

Journal Entry
Date		Accounts	PR	Dr.	Cr.
Dec.	20

Choose from any list or enter any number in the input fields and then continue to the next question.

Answer 1

Date	Account	Debit	credit
04-Dec	Cash	$                    450.00
	Sales Revenue		$                       450.00
	(To record goods sold)
	Cost of goods sold	$                    350.00
	Merchandise Inventory		$                       350.00
	(To record cost of goods sold )
09-Dec	Merchandise Inventory	$                3,300.00
	Accounts Payable		$                    3,300.00
	(To record inventory purchased )
20-Dec	Merchandise Inventory	$           110.00
	Cash		$             110.00
	(To record payment of freight )