Carry out the following exercises of different transactions where purchases, discounts and returns are made.
Nuevo Amanecer Bookstore sold 600 books on credit at $20.00 each with a sale term of 2/10 n/30. The cost of books sold is $8,400. After selling the books, the customer returned 50 books because they were damaged. The customer then paid the balance owed on the fifth day after purchasing the books. Journalizes the sale, return and payment made by the customer. Indicates the gross profit obtained by Librería Nuevo Amanecer for this sale.
Computadoras y Más offers discounts to its customers and allows the customer to return the product if they are not satisfied. Computadoras y Más had sales of $850,000 and offers the customer a payment term of 3/12 n/30. The company received $15,000 in returned items. Cost of goods sold for the period after returns was $320,000. Calculate the net profit and the gross profit.
Princesa Jewelry purchased $7,000 of inventory on credit from Wholesale Jewelry on February 2. The sale term they offered was 3/10 n/30. When they received the merchandise there were broken pieces for a total value of $800.00, which they returned to Wholesale Jewelry. On February 8, Joyería Princesa paid the balance owed. Journalize the purchase, the return and the payment made.
Part 2. Journalize the following entries of purchases, sales and returns.
Ferretería Amigos carried out the following transactions during the month of March:
| Fecha (marzo) | Transacción |
| 2 | $12,000 in inventory was purchased on credit with a term of 2/13 n/30 and FOB shipping point. |
| 4 | Merchandise for $400 of the purchase made on March 2 was returned because it was defective. |
| 6 | $250 freight was paid for the purchase of inventory purchased on March 2. |
| 11 | Inventory was sold on credit to a customer for $5,000 with a term of sale of 2/10 n/30. |
| 12 | The amount owed for the purchase of March 2 was paid. |
| 15 | A $490 allowance was offered to the customer on the March 11 purchase. |
| 20 | The customer who made the purchase on the 11th paid in full with the corresponding discounts. |
Sale:
Date: [Date of sale]
Accounts: Accounts Receivable (Customer’s name), Sales Revenue, Cost of Goods Sold, Inventory
Debit: Accounts Receivable (600 books * $20.00 each)
Credit: Sales Revenue (600 books * $20.00 each)
Debit: Cost of Goods Sold ($8,400)
Credit: Inventory ($8,400)
Date: [Date of return]
Accounts: Sales Returns and Allowances, Accounts Receivable (Customer’s name), Inventory
Debit: Sales Returns and Allowances (50 books * $20.00 each)
Credit: Accounts Receivable (50 books * $20.00 each)
Debit: Inventory ($8,400 / 600 books * 50 books)
Credit: Cost of Goods Sold ($8,400 / 600 books * 50 books)
Date: [Date of payment]
Accounts: Accounts Receivable (Customer’s name), Cash
Debit: Cash (Amount paid by the customer)
Credit: Accounts Receivable (Amount paid by the customer)
To find the gross profit, you would subtract the cost of goods sold from the sales revenue. In this case, it would be $8,400 – ($20.00 * 550 books) since 50 books were returned.
Computadoras y Más
Sales:
Date: [Date of sales]
Accounts: Accounts Receivable (Customers), Sales Revenue, Cost of Goods Sold
Debit: Accounts Receivable (Total sales)
Credit: Sales Revenue (Total sales)
Debit: Cost of Goods Sold ($320,000)
Date: [Date of returns]
Accounts: Sales Returns and Allowances, Accounts Receivable (Customers)
Debit: Sales Returns and Allowances ($15,000)
Credit: Accounts Receivable (Customers) ($15,000)
To calculate the gross profit, subtract the cost of goods sold from the net sales (total sales – returns). To calculate the net profit, subtract all expenses (including cost of goods sold) from the gross profit.
Princesa Jewelry
Purchase:
Date: February 2
Accounts: Inventory, Accounts Payable (Wholesale Jewelry)
Debit: Inventory ($7,000)
Credit: Accounts Payable (Wholesale Jewelry) ($7,000)
Return:
Date: [Date of return]
Accounts: Accounts Payable (Wholesale Jewelry), Inventory
Debit: Accounts Payable (Wholesale Jewelry) ($800)
Credit: Inventory ($800)
Now, let’s move on to Part 2 and journalize the transactions for Ferretería Amigos.
Purchase:
Date: March 2
Accounts: Inventory, Accounts Payable (Supplier’s name)
Debit: Inventory ($12,000)
Credit: Accounts Payable (Supplier’s name) ($12,000)
Return:
Date: March 4
Accounts: Accounts Payable (Supplier’s name), Inventory
Debit: Accounts Payable (Supplier’s name) ($400)
Credit: Inventory ($400)
Freight Payment:
Date: March 6
Accounts: Freight Expense, Cash
Debit: Freight Expense ($250)
Credit: Cash ($250)
Sale:
Date: March 11
Accounts: Accounts Receivable (Customer’s name), Sales Revenue, Inventory
Debit: Accounts Receivable (Customer’s name) ($5,000)
Credit: Sales Revenue ($5,000)
Debit: Cost of Goods Sold (Cost of goods sold for this sale)
Credit: Inventory (Cost of goods sold for this sale)
Payment for March 2 Purchase:
Date: March 12
Accounts: Accounts Payable (Supplier’s name), Cash
Debit: Accounts Payable (Supplier’s name) (Amount paid)
Credit: Cash (Amount paid)
Allowance:
Date: March 15
Accounts: Accounts Receivable (Customer’s name), Sales Returns and Allowances
Debit: Accounts Receivable (Customer’s name) (Amount of allowance)
Credit: Sales Returns and Allowances (Amount of allowance)
Customer Payment:
Date: March 20
Accounts: Cash, Accounts Receivable (Customer’s name)
Debit: Cash (Amount received)
Credit: Accounts Receivable (Customer’s name) (Amount received)
This summarizes the journal entries for all the transactions requested. Please note that specific dates, customer names, and amounts are placeholders and should be filled in with actual data.
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