Question

elementary accounting

Instructions Illustrate the effects of each of the preceding transactions on the accounts and financial statements of Epic Co. Identify each transaction by date. P4-2 Sales-related transactions The following selected transactions were completed by Affordable Supplies Co., which sells supplies primarily to wholesalers and occasionally to retail customers. Jan. 6. Sold merchandise on account, $14,000, terms FOB shipping point n/eom. The cost of merchandise sold was $8,400. 8. Sold merchandise on account, $20,000, terms FOB destination, 1/10, 1/30. The cost of merchandise sold was $14,000. 16. Sold merchandise on account, $19,500, terms FOB shipping point, n/30. The of merchandise sold was $11,700. 18. Received check for amount due for sale on January 8. 19. Issued credit memorandum for $4,500 for merchandise returned from January 16. The cost of the merchandise returned was $2,700. 26. Received check for amount due for sale on January 16 less credit memo of January 19. e returned from sale on SS credit memorandum 31. Paid Cashell Delivery Service $3,000 for merchandise delivered during customers under shipping terms of FOB destination. 31. Received check for amount due for sale of January 6. ered during January to

Answer 1

Date	Account Titles	Debit	Credit
Jan-06	Accounts Receivable	$       14,000
	Sales Revenue		$         14,000
	(Sales of goods on account)
	Cost of Goods Sold	$         8,400
	Inventory		$            8,400
	(Cost of goods sold recorded)
Jan-08	Accounts Receivable	$       20,000
	Sales Revenue		$         20,000
	(Sales of goods on account)
	Cost of Goods Sold	$       14,000
	Inventory		$         14,000
	(Cost of goods sold recorded)
Jan-16	Accounts Receivable	$       19,500
	Sales Revenue		$         19,500
	(Sales of goods on account)
	Cost of Goods Sold	$       11,700
	Inventory		$         11,700
	(Cost of goods sold recorded)
Jan-18	Cash	$       19,800
	Sales discount	$            200
	Accounts Receivable		$         20,000
	(Cash collected after 1% discount on Jan 8 sale)
Jan-19	Sales Return and allowance	$         4,500
	Accounts Receivable		$            4,500
	(Inventory returned by customer)
	Inventory	$         2,700
	Cost of Goods Sold		$            2,700
	(Inventory increased by goods received)
Jan-26	Cash	$       15,000
	Accounts Receivable		$         15,000
	(Cash collected from Jan 16 sale)
Jan-31	Delivery Expense	$         3,000
	Cash		$            3,000
	(Paid cash for delivery of goods)
Jan-31	Cash	$       14,000
	Accounts Receivable		$         14,000
	(Cash collected from Jan 6 sale)