Journalize the entries to record the following selected transactions:a. Sold $22,600 of merchandise on account, subject to a sales tax of 5%. The cost of the merchandise sold was $13,600.b. Paid $51,668 to the state sales tax department for taxes collected.Answer:
a. Accounts Receivable 23,730Sales 22,600Sales Tax Payable ($22,600 × 5%) 1,130Cost of Merchandise Sold 13,600Merchandise Inventory 13,600b. Sales Tax Payable 51,668Cash 51,668
What is the normal balance of the following accounts: (a) Cost of Merchandise Sold, (b) Delivery Expense, (c) Merchandise Inventory, (d) Sales, (e) Sales Discounts, (f) Sales Returns and Allowances, (g) Sales Tax Payable?Answer:a. debitb. debitc. debitd. credite. debitf. debitg. credit
Based on the following data, determine the cost of merchandise sold for November:
Merchandise inventory, November 1 $ 28,000Merchandise inventory, November 30 31,500Purchases 475,000Purchases returns and allowances 15,000Purchases discounts 9,000Freight in 7,000
Answer:
Cost of merchandise sold:Merchandise inventory, November 1 $ 28,000Purchases $475,000Less: Purchases returns andallowances $15,000Purchases discounts 9,000 24,000Net purchases $451,000Add freight in 7,000Cost of merchandise purchased 458,000Merchandise available for sale $486,000Less merchandise inventory, November 30 31,500Cost of merchandise sold $454,500
Based on the following data, determine the cost of merchandise sold for July:
Merchandise inventory, July 1 $ 190,850Merchandise inventory, July 31 160,450Purchases 1,126,000Purchases returns and allowances 46,000Purchases discounts 23,000Freight in 17,500
Answer:
Cost of merchandise sold:Merchandise inventory, July 1 $ 190,850Purchases $1,126,000Less: Purchases returns andallowances $46,000Purchases discounts 23,000 69,000Net purchases $1,057,000Add freight in 17,500Cost of merchandise purchased 1,074,500Merchandise available for sale $1,265,350Less merchandise inventory, July 31 160,450Cost of merchandise sold $1,104,900
