Question

Prepare the journal entries for the transactions below:

Credit terms for all sales on account are 2/10, n/30. Huff Fitness uses a perpetual inventory system and therefore records the cost of merchandise sold as well as the sale.

Apr 25   Received a credit memo from Iker Enterprises for merchandise returned, $400.

Apr 25   Sold merchandise on acct, Inv #308 to Ana’s Gym in the Grove, $9,262.50. COGS is $5,928.

Apr 26   Issued Check #2214 for $13,000 to Payroll for biweekly salaries: sales salaries, $8,000; Office salaries, $5,000.

Apr 26   Sold merchandise on account, Inv #309, to Extreme Fitness Club, $4,125. COGS is $2,640.

Answer 1

DATE	ACCOUNT TITLES AND EXPLANATION			DEBIT	CREDIT
						25-Apr	Iker Enterprises       Dr			400
	TO Inventory				400
	(BEING Credit note account for)
25-Apr	Ana                      Dr			9262.5
	To Sales				9262.5
	(Being sales account For )
	Cost of goods sold     Dr			5928
	To Inventory				5928
	(Being cost for goods sold )
26-Apr	Sales Salaries           Dr			8000
	Office Salaries Dr			5000
	To Bank				13000
	(Being salaries entered )
26-Apr	Extreme Fitness Club               Dr			4125
	To Sales				4125
	(Being sales account For )
	Cost of goods sold     Dr			2640
	To Inventory				2640
	(Being cost for goods sold )