Question

Prepare the journal entries for the transactions below:

Credit terms for all sales on account are 2/10, n/30. Huff Fitness uses a perpetual inventory system and therefore records the cost of merchandise sold as well as the sale.

Apr 17   Purchased merchandise on account from Sports A_Z Depot, $17,800. Terms are n/30. FOB shipping point.

Apr 18   Issued Check # 2209 for $4,429.60 to Fit & Health Products in payment of the net amount of its invoice of Apr 6 for $5,360, less the return of Apr 11 for $840, less the discount.

Apr 18   Issued Check #2210 for $53,200 to Lucas Distributors in payment of its invoice of Narch 21, no discount.

Apr 18   Issued Check #2211 for $185 to Sunshine Gazette for an advertisement in the April 15 edition.

Apr 18   Received a check for $23,054.50 from SF Gyms in payment of Inv #304 for $24,462.50, less the return of Apr 9 for $937.50, less discount.

Answer 1

Date	Accounts	Debit	Credit
Apr 17	Merchandise inventory	17800
	Accounts payable		17800
Apr 18	Accounts payable (5360-840)	4520
	Discount and allowances		90.40
	Cash		4429.60
Apr 18	Accounts payable	53200
	Cash		53200
Apr 18	Accounts payable	185
	cash		185
Apr 18	Cash	23054.50
	Discount and allowances	470.50
	Accounts receivables (24462.50-937.50)		23525