Requirements 1. Journalize the purchase transactions. Explanations are not required
2. In the final analysis, how much did the inventory cost Burlington Drug Store?
S5-4 Journalizing sales transactions Journalize the following sales transactions for Salem Sportswear. Explanations are not required. The company estimates sales returns at the end of each month.
Jul. 1 3 5 10 Salem sold $20,000 of men's sportswear for cash. Cost of goods sold is $10,000. Salem sold $62,000 of women's sportswear on account, credit terms are 3/10, n/30. Cost of goods is $31,000. Salem received a $4,500 sales return on damaged goods from the customer on July 1. Cost of goods damaged is $2,250. Salem receives payment from the customer on the amount due, less discount.
3 S-5 Estimating sales returns On December 31, Jack Photography Supplies estimated that approximately 2% merchandise sold will be returned. Sales Revenue for the year was $80,000 with a cost of $48,000. Journalize the adjusting entries needed to account for the estimated returns in purchase and sales transactions