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accounting exams









General Accounting Discussions: Need help figuring out how to journalize these problems

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    • CommentAuthorRonnieB
    • CommentTimeOct 10th 2008
     
    **Cash sales for April 22-30 were $ 20,200.00. The COMS is $ 12,120.00.

    I put cash/ sales, coms/ Merch Inventory

    **Issued check for 10,192.00 in payment of our invoice for 10,400.00 less 2% discount. (Terms are 2/10, n/30)

    I put Cash (debit) , sale discount (debit) / A/R (credit)

    These are for an accounting class that im taking online.

    Thank You all in advanced!
    • CommentAuthormfargen
    • CommentTimeOct 13th 2008
     
    1
    dr cash 20200
    cr sales 20200

    dr coms 12120
    cr merch inv 12120

    2
    dr accounts payable 10400
    cr sales discount 208
    cr cash 10192

    You were right in problem #1, but in #2, you debited cash. That would have had the effect of increasing cash (only correct if I misunderstood, and the check was received for an account receivable). It was unclear to me because you used the term "issued" check implying that you wrote a check. Hope I didn't confuse the issue further.

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