The following transactions are for Cullumber Company 1 On De

The following transactions are for Cullumber Company. 1. On December 3, Cullumber Company sold $533,400 of merchandise to Pharoah Co., terms 2/10, n/30. The cost of the 2. On December 8, Pharoah Co. was granted an allowance of $24,700 for merchandise purchased on December 3. merchandise sold was $312,100. 3. On December 13, Cullumber Company received the balance due from Pharoah Co.

Solution

Answer:

A)

Date

Description

Debit $

Credit $

3-Dec

Account recivable

533400

Sales

533400

(To record the credit sale)

Cost of goods sold

312100

Merchandise Inventory

312100

(To record the cost of merchandise)

8-Dec

Sales returns and allowance

24700

Account recivable

24700

(To record the Allowance)

13-Dec

Cash (508700-10174)

498526

Sales Discount (508700)*2%

10174

Account Recivable(533400-24700)

508700

B)

Date

Description

Debit $

Credit $

2-Jan

Cash

508700

Account Recivable(533400-24700)

508700

Date	Description	Debit $	Credit $
3-Dec	Account recivable	533400
	Sales		533400
	(To record the credit sale)
	Cost of goods sold	312100
	Merchandise Inventory		312100
	(To record the cost of merchandise)
8-Dec	Sales returns and allowance	24700
	Account recivable		24700
	(To record the Allowance)
13-Dec	Cash (508700-10174)	498526
	Sales Discount (508700)*2%	10174
	Account Recivable(533400-24700)		508700