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Chapter 1: AB-4SE (page 32)

Recording transactions in a sales journal

___________________________________________________________________

Jun. 1 Sold merchandise inventory on account to Fran Jack, \(1,220. Cost of goods, \)980. Invoice no. 101.

8 Sold merchandise inventory on account to Ireland Frank, \(2,025. Cost of goods, \)1,640. Invoice no. 102.

13 Sold merchandise inventory on account to Jake Thompson, \(420. Cost of goods, \)210. Invoice no. 103.

28 Sold merchandise inventory on account to Gabe West, \(820. Cost of goods, \)620. Invoice no. 104.

___________________________________________________________________

Use the following sales journal to record the preceding transactions. All credit sales are terms of n/30.





Sales journal

Date

Invoice No.

Customer Account Debited

Post. Ref.

Accounts Receivables Dr

Sales Revenue Cr

Cost of Goods Sold Dr.

Merchandise Inventory Cr.

Short Answer

Expert verified

Total sales revenue on account: $4,485

Step by step solution

01

Sales Journal

Sales journal is a special purpose journal that is used to record merchandise sales on account. The sales for any other asset on account are not recorded under this journal. The sales of merchandise in cash are also not recorded in this journal.

02

Transaction recording in the sales journal 





Sales journal

Date

Invoice No.

Customer Account Debited

Post. Ref.

Accounts Receivables Dr

Sales Revenue Cr

Cost of Goods Sold Dr.

Merchandise Inventory Cr.

June 1

101

Frank Jack

$1,220

$980

8

102

Ireland Frank

$2,025

$1,640

13

103

Jake Thompson

$420

$210

28

104

Gabe West

$820

$620

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Most popular questions from this chapter

Describe the similarities and differences among the four different types of business entities discussed in the chapter.

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