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Sagot :
Answer:
See the journal entries below.
Explanation:
The journal entry will look as follows:
Date Account and explanation Debit ($) Credit ($)
Aug 6 Inventory (50 * $100) 5,000
Account payable 5,000
(To record inventory purchased on account.)
Aug 7 Inventory 300
Cash 300
(To record payment of freight charges associated with the August 6 purchase.)
Aug 10 Account payable (5 * $100) 500
Inventory 500
(To record the returns of defective five game devices to GameGirl.)
Aug 14 Account payable (w.1) 4,500
Cash (balancing figure) 4,455
Inventory (w.2) 45
(To record the payment of the full amount due to GameGirl.)
Aug 23 Account receivable (30 * $120) 3,600
Sales revenue 3,600
Cost of goods sold 3,170
Inventory 3170
(To record the Sales and cost of 30 game devices purchased on August 6.)
Workings:
w.1. Account payable = Purchases on account on August 6 - Defective inventory returned on August 10 = $5,000 - $500 = $4,500
w.2. Inventory = Discount received on account payable for paying within 10 days = w.1 * 1% = $4,500 * 1% =$45
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