Office Supplies, Inc. uses a perpetual inventory system. Jou

Office Supplies, Inc. uses a perpetual inventory system. Journalize the following sales transactions for this company. Explanations are not required.

July 3 Sold $15,400 of merchandise on account, credit terms are 2/10, n/30

Cost of goods is $9,300.
July 7 Received a $750 sales return from the customer. Cost of the goods is $435.
July 12 Office Supplies receives payment for the customer for the amount due from the July 3 sale.

What will be an ideal response

ANSWER

Date Accounts and Explanation Debit Credit
Jul. 3 Accounts Receivable 15,400
Sales Revenue 15,400

Cost of Goods Sold 9,300
Merchandise Inventory 9,300

Jul. 7 Sales Returns and Allowances 750
Accounts Receivable 750

Merchandise Inventory 435
Cost of Goods Sold 435

Jul. 12 Cash ($14,650 − $293 ) 14,357
Sales Discounts ($14,650 × 0.02 ) 293
Accounts Receivable ($15,400 − $750 ) 14,650