Answer to Question #209079 in Accounting for Malik

Question

Dec. 8 Miss Ryce approved the sale of merchandise on credit to the following customers:

Customer’s Name Item Quantity Cost per Item

Sharon Nelson Lace Front Wig 1 $10,000

Kim Samuels Hair Relax 20 $750

Nadine Patterson Braiding Hair 15 $350

Sonia Jarrett Hair Care Kit 5 $4,500

Dec. 25 Miss Ryce made a cash lodgement of $300,000 to the bank.

Dec. 27 Miss Ryce paid cheques to Mr. Xinghu Chung for $250,000, receiving a 2%

discount, and to Cherry’s Wholesale Hair Supplies for $100,000, receiving a 2%

discount.

Dec. 29 After almost a month in business, Miss Ryce felt like she wanted to treat herself

to a weekend at the Secrets Wild Hotel in Montego. She withdrew $30,000 cash

from the business to supplement her personal expenses.

Dec. 31 All other customers who had taken goods on account on Dec. 8, 2021, cleared

their outstanding balances, by paying with a cheque.

Answer 1

Dec 8 Dr Sharon Nelson $10,000

Cr Credit Sales $10,000

Dec 8 Dr Kim Samuels $750

Cr Credit Sales $750

Dec 8 Dr Nadine Patterson $350

Cr Credit Sales $350

Dec 8 Dr Sonia Jarrett $4,500

Cr Credit Sales $4,500

Dec 25 Dr Bank $300,000

Cr Capital $300,000

Dec 27 Dr Mr. Xinghu Chung $250,000

Cr Bank $245,000

Cr Discount Received $5,000

Dec 27 Dr Cherry’s Wholesale $100,000

Cr Bank $98,000

Cr Discount Received $2,000

Dec 29 Dr Drawings $30,000

Cr Bank $30,000

Dec 31 Dr Bank $10,000 

Cr Sharon Nelson $10,000 

Dec 31 Dr Bank $750

Cr Kim Samuels $750 

Dec 31 Dr Bank $350

Cr Nadine Patterson $350

Dec 31 Dr Bank $4,500 

Cr Sonia Jarrett $4,500