Rally Auto Supplies uses a perpetual inventory system. Journ

Rally Auto Supplies uses a perpetual inventory system. Journalize the following sales transactions for this company. Explanations are not required.

June 10 Sold $14,800 of merchandise on account, credit terms are 3/15, n/30

Cost of goods is $6,200.
June 14 Received a $900 sales return from the customer. Cost of the goods is $400.
June 23 Rally Auto Supplies receives payment for the customer for the amount due from the June 10 sale.

What will be an ideal response

ANSWER

Date Accounts and Explanation Debit Credit
Jun. 10 Accounts Receivable 14,800
Sales Revenue 14,800

Cost of Goods Sold 6,200
Merchandise Inventory 6,200

Jun. 14 Sales Returns and Allowances 900
Accounts Receivable 900

Merchandise Inventory 400
Cost of Goods Sold 400

Jun. 23 Cash ($13,900 − $417 ) 13,483
Sales Discounts ($13,900 × 0.03 ) 417
Accounts Receivable ($15,400 − $750 ) 13,900