Accounting 1a Chapter 5 - Please make a journal Date - Accounts - DR -...
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Accounting
Accounting 1a Chapter 5 - Please make a journal
Date - Accounts - DR - CR
and ending inventory balance.
Bill's Music sells CDs. They have the following transactions for May 2005 5/1 5/2 5/5 Purchase 1000 CDs on account (2/10 n30) at $3 each and put into inventory Freight on the 5/1 purchase was $250. Pay in cash Sell 100 CDs for $1,200 - on account. CDs sold cost $300. Terms are 1/10 n30 Return 50 of the CDs purchased on 5/1 - not needed 5/8 Pay for the CDs (not the freight) purchased on 5/1 - net of returns/discount 5/9 Receive Payment for sale on 5/5. If eligible, customer takes the discount 5/29 Pay salaries of $500 5/30 Buy 100 more CDs at $4 each - cash 5/31 Sell 200 CDs for $2,500 - all cash. CDs sold cost $600 What is the ending balance of the Inventory Account Use the space below to make all entries for the month DEBIT ACCOUNT CREDIT
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