Answer to Question #171945 in Economics for Lori Johnson

Question

Accounting

Journalize each of the transactions below.

Feb 12    Bought merchandise on credit from Fruits, Nuts and More $8,500.

Feb 13    Returned $600 worth of merchandise to Fruits, Nuts and More. They had accidentally sent extra merchandise she did not order.

Feb 13 Bought additional merchandise, strawberry flavored heart-shaped cupcakes from Cakes by Lila, on credit $20,000.

Feb 13 Purchased fuel $10,000 cash for the delivery van, in order to do the deliveries to customers free of cost on Valentine’s day.

Feb 14    Sold merchandise collecting via the debit card machine amounting to $20,500

Feb 14 Sold merchandise collecting cash, $32,000. After all it is Valentine’s day!!     

Feb 18    Lodged cash of $35,000 to the business bank account

Answer 1

Feb 12

debit inventories account 8,500

Credit payable 8,500

Feb 13

debit payable 600

Credit inventories account 600

Feb 13

debit inventories account 20,000

Credit payable 20,000

Feb 13

debit inventories account 10,000

Credit cash 10,000

Feb 14

debit bank account 20,500

Credit sales 20,500

Feb 14

debit cash 32,000

Credit sales 32,000

Feb 18

debit bank account 35,000

Credit cash 35,000