Record journal entries for the following transactions of Furniture Warehouse. A. Aug. 3: Sold 15 couches at $113 each

Question

Record journal entries for the following transactions of Furniture Warehouse. A. Aug. 3: Sold 15 couches at $113 each to a customer, credit terms 3/15, n/30, invoice date August 3; the couches cost Furniture Warehouse $13 each. B. Aug. 8: Customer returned 2 couches for a full refund. The merchandise was in sellable condition at the original cost. C. Aug. 18: Customer paid their account in full with cash.

Help In Homework · Accepted Answer

Answer There are three events in the questions for which journal entries are as below Date General Journal Debit Credit Aug 3 Accounts Receivable 1,695 Sales 1,695 (15 x $113) To recognize sale of couches, terms 3/15, n/30 Cost of Goods Sold 195 Merchandise Inventory 195 (15 x $13) To recognize cost of sale Aug 8 Sales Returns and Allowance 226 Accounts Receivable 226 (2 x $113) To recognize 2 couches returned for full refund Merchandise Inventory 26 Cost of Goods Sold 26 (2 x $13) To return 2 couches to inventory Aug 18 Cash 1,425 Sales Discount (1469 x 3%) 44 Accounts Receivable ($1695-$226) 1,469 To recognize customer payment, less discount

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Record journal entries for the following transactions of Furniture Warehouse

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Date	General Journal	Debit	Credit

Aug 3	Accounts Receivable	1,695
	Sales		1,695
	(15 x $113)
	To recognize sale of couches, terms 3/15, n/30

	Cost of Goods Sold	195
	Merchandise Inventory		195
	(15 x $13)
	To recognize cost of sale

Aug 8	Sales Returns and Allowance	226
	Accounts Receivable		226
	(2 x $113)
	To recognize 2 couches returned for full refund

	Merchandise Inventory	26
	Cost of Goods Sold		26
	(2 x $13)
	To return 2 couches to inventory

Aug 18	Cash	1,425
	Sales Discount (1469 x 3%)	44
	Accounts Receivable ($1695-$226)		1,469
	To recognize customer payment, less discount