Question

May

20

Paid Korman Co. a cash refund for May 6thInvoice

$ 5,978

Merchandise was invoiced at $6,100

With a $4,000 cost of merchandise

Journalize this transaction in the proper accounts

Answer 1

Solution:

Journal Entries - Korman Co
Date	Particulars	Debit	Credit
6-May	Accounts Receivables Dr	$6,100.00
	To Sales Revenue		$6,100.00
	(To record sales)
6-May	Cost of goods sold Dr	$4,000.00
	To Inventories		$4,000.00
	(Being inventory sold transferred to COGS)
20-May	Cash Dr	$5,978.00
	Sales Discount Dr	$122.00
	To Accounts Receivables		$6,100.00
	(Being cash received)

Journal Entries - Purchaser Co
Date	Particulars	Debit	Credit
6-May	Inventories Dr	$6,100.00
	To Accounts Payable		$6,100.00
	(To record purchase on account)
20-May	Accounts Payable Dr	$6,100.00
	To Purchase discount		$122.00
	To Cash		$5,978.00
	(Being cash paid to Korman Co for May 6th invoice)