Question

Journalize the following merchandise transactions:

A. Sold merchandise on account, $13,100 with terms 2/10, net 30. The cost of the merchandise sold was $7,000.

B. Received payment less the discount.

C. Purchased merchandise on account from a supplier for $5,600, terms 2/10, net 30.

D. Returned $1,150 of the merchandise and received full credit.

E. Paid for the merchandise within the discount period.

Answer 1

S.No	Particulars	Amount Dr.	Amount Cr.
A	Account Recievable Account Dr.	13100
	To Sales Account		13100
	(Being Credit Sales recorded)
B	Bank Account Dr.	12838			Account Receivable	13,100.00
	Discount Allowed Dr.	262			Discount at 2%	262.00
	To Account Recievable Account		13100		Net Reciept	12,838.00
	(Being Payment received)
C	Purchases Account Dr.	5600
	To Account Payable Account		5600
	(Being Credit Purchase recorded)				Account Payable	5,600.00
					Less: Returns	1,150.00
D	Account Payable Account Dr.	1150			Net Outstanding Balance	4,450.00
	To Purchases Account		1150		Discount at 2%	89.00
	(Being Purchase return recorded and credit received)				Net Payment	4,361.00
E	Account Payable Account Dr.	4361
	To Bank Account		4361
	(Being AP settled in full within discounted period)