Question

journalize the following sales transactions for King company. explanations are not required. Apr. 1 King company sold merchandise inventory for $150. the cost of the inventory was $90. the customer paid cash. King company was running a promotion and the customer received a $20 award at the time of the sale that can be used at a future date on any King company merchandise begin by preparing the entry to journalize the sale portion of the transaction. do not record the expense related to the sale we will do that in the following ste

Cick the icon to view the traneactions ) pr 1 King Company sald marchandise inventory for $150 The cos be used at a ture date on any King Company merchandise of the inventory was $90 The customer paid cash King Company was nunning a prometion and the customer eceved a $20 award at the time of sale that can Begih by greparing the entry to jounalize the sale poition et the ransaction Da not recond the expense rolated to the sale We will do that in the folowing step Record debits first, then credits Exclude explanadons hom jounal Date More Info Accounts Date

Answer 1

Record journal entries in the books of K Company using perpetual inventory system for sales transactions as follows: Journal entries Accounts title and explanations Date Debit $ Credit $ Apr-01Cash 150 Sales Revenue 150 (To record sale of merchandise invento Apr-01 Cost of Goods Sold 90 Merchandise Invento To record the cost of goods sold 90 May 15Cash (S30- $20 10 20 Unearned Revenue Sales Revenue 30 (To record sale of merchandise uses customer award May 15 Cost of Goods Sold 18 Merchandise Invento To record cost of goods sold 18