Purpose: (L.O. *6) This exercise reviews the journal entries to record sales of merchandise inventory under a periodic inventory system.
A list of transactions for the Randy Travis Sales Company appears below. A periodic inventory system is used.
|July 17||Sold merchandise with a cost of $300 to Eric Nelson for cash, $520.|
|18||Sold merchandise with a cost of $340 to Guy Sellars for $580, terms 2/10, n/30.|
|23||Issued a credit memo for $80 to Guy Sellars because of a sales allowance granted to him due to the inferior quality of goods sold to him on July 18.|
|26||Received payment from Guy Sellars for amount due for sale of July 18.|
|27||Sold merchandise to Jason Zahner, $200, terms n/30. The merchandise cost $120.|
|Aug. 25||Received payment in full from Jason Zahner.|
|Sept. 5||Sold merchandise to Andrea Brotherly, $600, terms 2/10, n/30. The merchandise cost $350.|
|22||Received payment from Andrea Brotherly for amount due for sale of Sept. 5.|
Prepare the journal entries to record these transactions on the books of the Randy Travis Sales Company.