In: Accounting
Selected transactions follow for Covington Sports Ltd. during the company’s first month of business. The company expects a return rate of 8% and uses a perpetual inventory system.
Feb. | 2 | Sold $1,135 of merchandise to Andrew Noren on account, terms n/30. The goods had cost Covington $758. | ||
4 | Andrew Noren returned for credit $141 of the merchandise purchased on February 2. The goods had cost Covington $84 and they were returned to inventory. | |||
5 | Sold $762 of merchandise to Dong Corporation on account, terms n/30. The goods had cost Covington $486. | |||
8 | Sold $839 of merchandise to Michael Collins for cash. The goods had cost Covington $621. | |||
10 | Sold $920 of merchandise to Rafik Kurji account, terms n/30. The goods had cost Covington $677. | |||
22 | Dong Corporation paid its account in full. | |||
24 | Andrew Noren purchased an additional $690 of merchandise on account, terms n/30. The goods had cost Covington $414. | |||
27 | Sold $1,743 of merchandise to Batstone Corporation, terms n/30. The goods had cost Covington $1,100. | |||
28 | Andrew Noren paid $994 on account. |
(a)
Prepare the journal entries to record each of the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to the nearest whole dollar, e.g. 5,275.)
Feb 2 | Accounts Receivable A/C Dr. | $1,135 | |
To Sales A/C | $1,135 |
Feb 2 | Cost of goods sold A/C Dr. | $758 | |
To Merchandise A/C | $758 |
Feb 4 | Sales returns A/C Dr. | $141 | |
To Accounts Receivable A/C | $141 |
Feb 4 | Merchandise A/C Dr. | $84 | |
To Cost of goods sold A/C | $84 |
Feb 5 | Accounts Receivable A/C Dr. | $762 | |
To Sales A/C | $762 |
Feb 5 | Cost of goods sold A/C Dr. | $486 | |
To Merchandise A/C | $486 |
Feb 8 | Cash A/C Dr. | $839 | |
To Sales A/C | $839 |
Feb 8 | Cost of goods sold A/C Dr. | $621 | |
To Merchandise A/C | $621 |
Feb 10 | Accounts Receivable A/C Dr. | $920 | |
To Sales A/C | $920 |
Feb 10 | Cost of goods sold A/C Dr. | $677 | |
To Merchandise A/C | $677 |
Feb 22 | Cash A/C Dr. | $762 | |
To Accounts Receivable A/C | $762 |
Feb 24 | Accounts Receivable A/C Dr. | $690 | |
To Sales A/C | $690 |
Feb 24 | Cost of goods sold A/C Dr. | $414 | |
To Merchandise A/C | $414 |
Feb 27 | Accounts Receivable A/C Dr. | $1,743 | |
To Sales A/C | $1,743 |
Feb 27 | Cost of goods sold A/C Dr. | $1,100 | |
To Merchandise A/C | $1,100 |
Feb 28 | Cash A/C Dr. | $994 | |
To Accounts Receivable A/C | $994 |