Comprehensive Problem 5 Part Level Submission Debit Credit a

Comprehensive Problem 5 (Part Level Submission)

Debit

Credit

(a)

Date

Account Titles and Explanation

Debit

Credit

Dec. 6

(To record sales revenue.)

(To record cost of goods sold.)

(To record the sales revenue.)

(To record cost of goods sold.)

Comprehensive Problem 5 (Part Level Submission)

On December 1, 2017, Prosen Distributing Company had the following account balances.

	Debit		Credit
Cash	$7,500	Accumulated Depreciation—Equipment	$2,640
Accounts Receivable	4,600	Accounts Payable	4,900
Inventory	12,400	Salaries and Wages Payable	1,000
Supplies	1,400	Common Stock	30,000
Equipment	26,400	Retained Earnings	13,760
	$52,300		$52,300

During December, the company completed the following summary transactions.

Dec. 6		Paid $1,800 for salaries and wages due employees, of which $800 is for December and $1,000 is for November salaries and wages payable.
8		Received $1,900 cash from customers in payment of account (no discount allowed).
10		Sold merchandise for cash $6,800. The cost of the merchandise sold was $4,200.
13		Purchased merchandise on account from Maglio Co. $8,900, terms 2/10, n/30.
15		Purchased supplies for cash $1,800.
18		Sold merchandise on account $12,600, terms 3/10, n/30. The cost of the merchandise sold was $8,200.
20		Paid salaries and wages $1,500.
23		Paid Maglio Co. in full, less discount.
27		Received collections in full, less discounts, from customers billed on December 18.

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Journal entry :

Date	account and explanation	debit	credit
Dec 6	Salary expense	800
	Salary payable	1000
	Cash		1800
	(To record salary paid)

Dec 8	Cash	1900
	Account receivable		1900
	(To record amount received)

Dec 10	Account receivable	6800
	Saless		6800
	(To record Sales)

Dec 10	Cost of goods sold	4200
	Merchandise inventory		4200
	(To record cost of goods sold)

Dec 13	Merchandise inventory	8900
	Account payable		8900
	(To record purchase)

Dec 15	Supplies	1800
	Cash		1800
	(To record purchase supplies)

Dec 18	Account receivable	12600
	Sales revenue		12600
	(To record Sales)

Dec 18	Cost of goods sold	8200
	Merchandise inventory		8200
	(To record cost of goods sold)

Dec 20	Salary and wages expense	1500
	Cash		1500
	(To record salary and wages paid)

Dec 23	Account payable	8900
	Cash (8900*98%)		8722
	Merchandise inventory		178
	(To record amount paid)

Dec 27	Cash (12600*97%)	12222
	Sales discount	378
	Account receivable		12600
	(To record amount received)