Response:
A.
Dec. 28, 20Y3
Dr Accounts Receivable - Beasley Co. 18,500
Cr Sales Revenue 18,500
Dec. 28, 20Y3
Dr Cost of Goods Sold 11,200
Cr Inventory 11,200
B.
Jan. 3, 20Y4
Dr Sales Returns and Allowances 4,000
Cr Accounts Receivable - Beasley Co. 4,000
Jan. 3, 20Y4
Dr Inventory 2,350
Cr Cost of Goods Sold 2,350
C. Jan. 7, 20Y4
Dr Cash 14,210
Dr Sales Discount 290
Cr Accounts Receivable - Beasley Co. 14,500
Explanation:
A. Recording the entry for the sale on December 28, 20Y3, using a perpetual inventory system’s net method.
Dec. 28, 20Y3
Dr Accounts Receivable - Beasley Co. 18,500
Cr Sales Revenue 18,500
Dec. 28, 20Y3
Dr Cost of Goods Sold 11,200
Cr Inventory 11,200
B. Journals to record the returns of merchandise
Jan. 3, 20Y4
Dr Sales Returns and Allowances 4,000
Cr Accounts Receivable - Beasley Co. 4,000
Jan. 3, 20Y4
Dr Inventory 2,350
Cr Cost of Goods Sold 2,350
C. Journal entry to document the receipt of amount owed
Jan. 7, 20Y4
Dr Cash 14,210
[(18,500-4,000)-(18,500-4,000)*2% ]
Dr Sales Discount 290
[(18,500-4,000)*2% ]
Cr Accounts Receivable - Beasley Co. 14,500
(18,500-4,000)
