Question

11) Rally Auto Supplies Company uses a perpetual inventory system. Journalize the following sales transactions for this company. Explanations are not required.

June 10 Sold $14,800 of merchandise on account, n/30. Cost of goods is $6,200. June 14 Received a $900 sales return from the customer. Cost of the goods is $400. June 20 Rally Auto Supplies receives payment from the customer for the amount due from the June 10 sale.

Answer 1

Date	Account Description	Debit	Credit
10-Jun	Accounts Receivable	14,800.00
	Sales Revenue		14,800.00
	(Being Sales Recorded)
10-Jun	Cost of Goods Sold	6,200.00
	Inventory		6,200.00
	(Being Transferred to Cost from Inventory)
14-Jun	Sales Return	900.00
	Accounts Receivable		900.00
	(Being Goods returned)
14-Jun	Inventory	400.00
	Cost of Goods Sold		400.00
	(Being Returned Goods taken into inventory)
20-Jun	Cash	13,900.00
	Accounts Receivable		13,900.00
	(Being cash received on Account)

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