Question

Question 4 Not complete Marked out of 8.00 P Flag question Journal Entries for Merchandise Transactions on Seller's and Buyer's Books-Perpetual System The following are selected transactions for Lamont, Inc., during the month of June: June 21 Sold and shipped on account to Lowery Company. 56.880 (56.000 cost) of merchandise, with terms of 2/10, 1/30. 28 Lowery Company returned defective merchandise billed at 5680 on June 21 (5610 cost.) 30 Received from Lowery Company a check for full settlement of the June 21 transaction Required Prepare the necessary journal entries for (a) Lamont, Inc., and (b) Lowery Company. Both companies use the perpetual inventory system. LAMONT, INC. GENERAL JOURNAL Description Date Debit Credit June 21 Sold merchandise to Lowery Company terms 2/10 n/30. Cost of merchandise sold to Lowery Company Merchandise returned by Lowery Company Cost of merchandise returned by Lowery Company Sales Discounts Recored amount due from Lowery Company LOWERY COMPANY GENERAL JOURNAL Description Debit Credit Puis teema on

Answer 1

Solution:-

a)

DATE	LAMONT INC GENERAL JOURNAL DESCRIPTION	DEBIT $	CREDIT $
JUNE 21	Account Receivable To Sale	6880	6880
	Cost of Goods Sold To Inventory	6000	6000
JUNE 28	Sale To Account Receivable	680	680
	Inventory To Cost of Good Sold	610	610
JUNE 30	Bank/Cash Sale Discount To Account Receivable	6076 124	6200

b)

DATE	LOWERY COMPANY GENERAL JOURNAL DESCRIPTION	DEBIT $	CREDIT $
JUNE 21	Inventory To Account Payable	6880	6880
JUNE 28	Account Payable To Inventory	680	680
JUNE 30	Account Payable To Sale Discount To Bank/Cash	6200	124 6076

As Payment was made within 10 days Sale Discount Availed

Sale Discount = 2 % Of 6200 = 124 $