Question

Determine the appropriate account to for the journal entry for the month of May by placing the appropriate identification number(s) in the debit o credit column provided for each item. The company uses a perpetual inventory system.

1.	Cash	5.	Supplies	9.	Sales Discounts
2.	Accounts Receivable	6.	Land	10.	Sales Revenue
3.	Notes Receivable	7.	Accounts Payable	11.	Cost of Goods Sold
4.	Inventory	8.	Sales Returns and Allowances	12.	Freight-Out

Group of answer choices

Sold merchandise with a cost of $250 for cash of $450, terms net 30 The account to be credited for $450 is:

      [ Choose ]            Inventory            Sales Returns and Allowances            Cost of Goods Sold            Accounts Payable            Cash            Sales Revenue      

Sold merchandise with a cost of $250 for cash of $450, terms net 30. The account to be credited for $250 is:

      [ Choose ]            Inventory            Sales Returns and Allowances            Cost of Goods Sold            Accounts Payable            Cash            Sales Revenue      

Purchased merchandise from Supplier, Inc. on account for $2,000, terms 2/10, n/30. The account to be debited is:

      [ Choose ]            Inventory            Sales Returns and Allowances            Cost of Goods Sold            Accounts Payable            Cash            Sales Revenue      

Returned $500 of merchandise that had been purchased from Supplier, Inc. The account to be credited is:

      [ Choose ]            Inventory            Sales Returns and Allowances            Cost of Goods Sold            Accounts Payable            Cash            Sales Revenue      

Sold merchandise costing $550 to Bike World for $900 on account, terms 2/10, n/30. Bike World will pay $40 freight costs per the shipping terms. The account to be debited for $550 is :

      [ Choose ]            Inventory            Sales Returns and Allowances            Cost of Goods Sold            Accounts Payable            Cash            Sales Revenue      

Accepted a return of merchandise from Bike World. Granted a credit on account of $100. The account to be debited for $100 is:

      [ Choose ]            Inventory            Sales Returns and Allowances            Cost of Goods Sold            Accounts Payable            Cash            Sales Revenue      

Purchased merchandise from AB Supply on account for $1,600; terms 1/10, n/30 The account to be credited for $1,600 is:

      [ Choose ]            Inventory            Sales Returns and Allowances            Cost of Goods Sold            Accounts Payable            Cash            Sales Revenue      

Paid freight of $90 on the shipment from Supplier, Inc. per the shipping terms of the purchase. The account to be credited for $90 is:

Answer 1

Sold merchandise with a cost of $250 for cash of $450, terms net 30 The account to be credited for $450 is:

	Debit	Credit
Accounts Receivable	450
Sales Revenue		450

Sold merchandise with a cost of $250 for cash of $450, terms net 30. The account to be credited for $250 is:

	Debit	Credit
Cost of Goods Sold	250
Inventory		250

Purchased merchandise from Supplier, Inc. on account for $2,000, terms 2/10, n/30. The account to be debited is:

	Debit	Credit
Inventory	2,000
Accounts Payable		2,000

Returned $500 of merchandise that had been purchased from Supplier, Inc. The account to be credited is:

	Debit	Credit
Accounts Payable	500
Inventory		500

Sold merchandise costing $550 to Bike World for $900 on account, terms 2/10, n/30. Bike World will pay $40 freight costs per the shipping terms. The account to be debited for $550 is:

	Debit	Credit
Cost of Goods Sold	550
Inventory		550

Accepted a return of merchandise from Bike World. Granted a credit on account of $100. The account to be debited for $100 is:

	Debit	Credit
Sales Returns and Allowances	100
Accounts Receivable		100

Purchased merchandise from AB Supply on account for $1,600; terms 1/10, n/30 The account to be credited for $1,600 is:

	Debit	Credit
Inventory	1,600
Accounts Payable		1,600

Paid freight of $90 on the shipment from Supplier, Inc. per the shipping terms of the purchase. The account to be credited for $90 is:

	Debit	Credit
Inventory	90
Cash		90