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Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition by Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt

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*EXERCISE 5-8

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.

Instructions

Prepare the journal entries to record these transactions on the books of the Randy Travis Sales Company.

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