4.02 Journalizing Entries Merchandise Bus. Pt 2 [2020]

Dipper's Ice Cream Parlor returned merchandise that was purchased on account to The Ice Cream Company, $825. The journal entry for Dipper's Ice Cream Parlor to record this transaction is:

• debit Accounts Payable/The Ice Cream Company, $825; credit Purchases Returns and Allowances, $825.

• debit Accounts Receivable/The Ice Cream Company, $825; credit Purchases Returns and Allowances, $825.

• debit Purchases Returns and Allowances, $825; credit Accounts Payable/The Ice Cream Company, $825.

• debit Purchases Returns and Allowances, $825; credit Purchases, $825.

Allen discovered that a sale on account to Jones Company on June 5 for $560 was incorrectly charged to the account of Jackson Company. The journal entry to correct this error is:

• debit Accounts Payable/Jones Company, $560; credit Accounts Payable/Jackson Company, $560.

• debit Accounts Receivable/Jones Company, $560; credit Accounts Receivable/Jackson Company, $560.

• debit Accounts Receivable/Jackson Company, $560; credit Accounts Receivable/Jones Company, $560.

• debit Accounts Payable/Jackson Company, $560; credit Accounts Payable/Jones Company, $560.

The Toy Shop sold merchandise to Spirit Church for $41 cash. The journal entry for The Toy Shop to record this transaction is:

• debit Sales, $41; credit Accounts Receivable/Spirit Church, $41.

• debit Accounts Receivable/Spirit Church, $41; credit Sales $41.

• debit Cash, $41; credit Sales, $41.

• debit Sales, $41; credit Cash, $41.

Busters' Department Store sold merchandise for $65, plus sales tax of $4, to Jake Coble who charged the sale on his bank credit card. Mr. Coble later returned the merchandise. The journal entry for Busters' Department Store to record the returned merchandise is:

• debit Accounts Receivable/Jake Coble, $69; credit Sales Returns and Allowances, $65, Sales Tax Payable, $4.

• debit Sales Returns and Allowances, $65, Sales Tax Payable, $4; credit Accounts Receivable/Jake Coble, $69.

• debit Sales Returns and Allowances, $65, Sales Tax Payable, $4; credit Cash, $69.

• debit Cash, $69; credit Sales Returns and Allowances, $65, Sales Tax Payable, $4.

Overseas Oil Co. sold merchandise for $665, plus sales tax of $48, to Auto Plastics, who paid for the merchandise with a bank credit card at the time of the sale. The journal entry for Overseas Oil Co. to record this transaction is:

• debit Sales, $665, Sales Tax Payable, $48; credit Cash $713.

• debit Cash, $713; credit Sales, $665, Sales Tax Payable, $48.

• debit Accounts Receivable/Auto Plastics, $713; credit Cash, $713.

• debit Sales, $665, Sales Tax Payable, $48; credit Accounts Receivable/Auto Plastics, $713.

Lotta Milk, Inc. received $235 cash from Biggies Grocery for payment on account. The journal entry for Lotta Milk, Inc. to record this transaction is:

• debit Accounts Receivable/Biggies Grocery, $235; credit Cash, $235.

• debit Cash, $235; credit Accounts Receivable/Biggies Grocery, $235.

• debit Sales, $235; credit Cash, $235.

• debit Cash, $235; credit Sales, $235.

Moped, Inc. sold merchandise for cash to Molly's Mopeds for $312, plus sales tax of $25. The journal entry for Moped, Inc. to record this transaction is:

• debit Cash, $337; credit Sales, $312, Sales Tax Payable, $25.

• debit Accounts Receivable/Molly's Mopeds, $337; credit Cash, $337.

• debit Accounts Receivable/Molly's Mopeds, $337; credit Sales, $312, Sales Tax Payable, $25.

• debit Sales, $312, Sales Tax Payable, $25; credit Accounts Receivable/Molly's Mopeds, $337.

The Toy Box sold merchandise for cash to Great Gift Boxes for $265, plus sales tax of $20. The journal entry for The Toy Box to record this transaction is:

• debit Accounts Receivable/Great Gift Boxes, $285; credit Cash, $285.

• debit Cash, $285; credit Accounts Receivable/Great Gift Boxes, $285.

• debit Sales, $265, Sales Tax Payable, $20; credit Cash, $285.

• debit Cash, $285; credit Sales, $265, Sales Tax Payable, $20.

Piggy's Butcher House received $114 cash from Jimmy's Barbeque for payment on account. The journal entry for Piggy's Butcher House to record this transaction is:

• debit Cash, $114; credit Sales, $114.

• debit Sales, $114; credit Cash, $114.

• debit Cash, $114; credit Accounts Receivable/Jimmy's Barbeque, $114.

• debit Accounts Receivable/Jimmy's Barbeque, $114; credit Cash, $114.

ABC Computers received $489 cash from Quality Electronics for payment on account. The journal entry for ABC Computers to record this transaction is:

• debit Cash, $489; credit Accounts Receivable/Quality Electronics, $489.

• debit Sales, $489; credit Accounts Receivable/Quality Electronics, $489.

• debit Accounts Receivable/Quality Electronics, $489; credit Sales, $489.

• debit Accounts Receivable/Quality Electronics, $489; credit Cash, $489.