Question

Required Informstion [The following infometion applies to the questions displayed below Hair World Inc. s a wholesaler of hair supplies. Hair World uses a perpetual Inventory system. The following transactions (summarized) have been selected for analysis: Sald marchandiz Car ch cat at marchandiz $42,797) Raaivd archandiz turnad by tomar untifectary tin parfect canditian) Car a rafond (ariainal cast a marhandisa 570 . Sald marchandiz (casting $5,075 to tamar an ant writh tam n/80 Callacted hal a th lanca d y th astamar in () Grantad prtial a1laanc ralsting to erdit alur th tamar in (c) had nat yat Paid Sמז, 17,DDD ,500 272 3. Prepare Journal entries to record transactions (ae. (If no entry Is required for a transactionlevent, select "No Journal Entry Required" In the first account field.) Viaw tranas ction list viaw jeurnal antry workshest X Debit Credit 79200 79200 Recard the cash sales of $79,200 42797 Record the cost of goods sold of $42,797 42.797 Recard the return by a custamer of unsatistactoary merchandise that was In pertect candition. A cash 950 retund of $950 was given to the customer 950 Record the merchandise returned by the customer back 570 Into inventory. The original cost of then merchandise was S570 570 Record the sales on account of $17,000 an terms n/e0 17,000 17,000 Recard the cost of goods sald of $3,075 Note -ournal entry has been entered 8,075 Inventory 8,0752 8500 7 d Cash Accounts Recelvable 8.500 8 272 Accounts Recevable 272

Answer 1

Journal entry

No	Transaction	General journal	Debit	Credit
1	a	Cash	79200
		Sales revenue		79200
2	b	Cost of goods sold	42797
		Inventory		42797
3	c	Sales return and allowance	950
		Cash		950
4	d	Inventory	570
		Cost of goods sold		570
5	e	Account receivable	17000
		Sales revenue		17000
6	f	Cost of goods sold	8075
		Inventory		8075
7	g	Cash	8500
		Account receivable		8500
8	h	Sales return and allowance	272
		Account receivable		272