The following transactions were selected from the records of

The following transactions were selected from the records of Evergreen Company: July 12 Sold merchandise to Wally Butler, who paid the $1,200 purchase with cash. The goods cost 15 Sold merchandise to Claudio\'s Chair Company at a selling price of $5,200 on terms 3/10, n/30. 20 Sold merchandise to Otto\'s Ottomans at a selling price of $3,100 on terms 3/10, n/30. The goods 23 Collected payment from Claudio\'s Chair Company from the July 15 sale. Evergreen Company $700. The goods cost Evergreen Company $3,600. cost Evergreen Company $2,000. Aug. 25 Collected payment from Otto\'s Ottomans from the July 20 sale. Required: Assuming that Sales Discounts are reported as contra-revenue, compute Net Sales for the two months ended August 31. (Round your answer to 2 decimal places.) Net Sales

Solution

Answer

No.

Accounts Title & explanation

Debit

Credit

Jul-12

Cash

$          1,200.00

Sales Revenue

$                  1,200.00

(sales made on cash)

Jul-12

Cost of Goods Sold

$             700.00

Inventory

$                      700.00

(Inventory amount adjusted)

Jul-15

Accounts receivables

$          5,200.00

Sales Revenue

$                  5,200.00

(Sales made on account)

Jul-15

Cost of Goods Sold

$          3,600.00

Inventory

$                  3,600.00

(Inventory amount adjusted)

Jul-20

Accounts receivables

$          3,100.00

Sales Revenue

$                  3,100.00

(Sales made on account)

Jul-20

Cost of Goods Sold

$          2,000.00

Inventory

$                  2,000.00

(Inventory amount adjusted)

Jul-23

Cash

$          5,044.00

Sales Discount

$             156.00

Accounts receivables

$                  5,200.00

(cash received within discounting term of 10 days)

Aug-25

Cash

$          3,100.00

Sales Discount

$                       -  

Inventory

$                  3,100.00

(cash received After discounting term of 10 days)

Sales

Jul-12

$      1,200.00

Jul-15

$      5,200.00

Jul-20

$     3,100.00

Total Sales

$      9,500.00

Sales Discount - Jul 23

$       (156.00)

Net Sales

$      9,344.00

No.	Accounts Title & explanation	Debit	Credit
Jul-12	Cash	$          1,200.00
	Sales Revenue		$                  1,200.00
	(sales made on cash)
Jul-12	Cost of Goods Sold	$             700.00
	Inventory		$                      700.00
	(Inventory amount adjusted)
Jul-15	Accounts receivables	$          5,200.00
	Sales Revenue		$                  5,200.00
	(Sales made on account)
Jul-15	Cost of Goods Sold	$          3,600.00
	Inventory		$                  3,600.00
	(Inventory amount adjusted)
Jul-20	Accounts receivables	$          3,100.00
	Sales Revenue		$                  3,100.00
	(Sales made on account)
Jul-20	Cost of Goods Sold	$          2,000.00
	Inventory		$                  2,000.00
	(Inventory amount adjusted)
Jul-23	Cash	$          5,044.00
	Sales Discount	$             156.00
	Accounts receivables		$                  5,200.00
	(cash received within discounting term of 10 days)
Aug-25	Cash	$          3,100.00
	Sales Discount	$                       -
	Inventory		$                  3,100.00
	(cash received After discounting term of 10 days)