chapter 5 Financial Accounting

Received $100 credit for books returned to Kline Publishers

Accounts Payable 100 ............................................ Inventory 100

Paid Kline Publishers in full, less discount.

Accounts Payable 1500 .............................Inventory 30 ...............................Cash 1470

Sold books on account to Reddy Bookstore for $1,400. The cost of the books sold was $850.

Accounts Receivable 1400 ............................................sales 1400 Cost of goods sold 850 ................................inventory 850

Sold books on account to reading Rainbow for $2,500. The cost of the books sold was $1440

Accounts Receivable 2500 .........................Sales Revenue 2500 . Cost of good sold 1440 .............................Inventory 1440

Paid Dietz Publishers in full, less discount.

Accounts payable 1500 ..............................inventory 30 ................................Cash 1470

Sold books on account to Blanco Books for $1,800. The cost of the books sold was $1,080.

Accounts receivable 1800 .............................Sales Revenue 1800 Cost of Goods sold $1080 ................................Inventory $1080

Received payment in full from Reading Rainbow

Cash 2500 ...............accounts receivable 2500

Received payment in full from Blanco Books.

Cash......1764 sales disc 36 ...............Accounts receivable 1800

Purchased books on account for $1,500 from Dietz Publishers, FOB destination, terms 2/15, n/30. The appropriate party also made a cash payment of $50 for the freight on this date.

Inventory 1500 .....................Accounts payable 1500

Purchased Books on account for $1600 from Kline Publishers, FOB destination, terms 2/10, n/30. The appropriate party also made a cash payment of $50 for the freight on this date

Inventory 1600 ................... Accounts Payable 1600

Granted Reddy Bookstore $120 credit for books returned costing $72.

Sales returns and allowances 120 ....................................Accounts Receivable 120 Inventory 72 ............Cost of goods sold 72