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July 3: Sold computers on account for $11,900 to Smith Auto Store, terms 1/15, n/60. The cost of the computers is $7,140.

Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step.

date | accounts and explanation | debit | credit

Now journalize the expense related to the July 3 sale.

date | accounts and explanation | debit | credit

July 5: Sold two computers for $3,600 to Archie Hugo. The cost of the computers is $2,160. Hugo paid cash.

Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step.

date | accounts and explanation | debit | credit

Now journalize the expense related to the July 5 sale.

date | accounts and explanation | debit | credit

july 12: Received full payment from Smith Auto Store on the balance due

date | accounts and explanation | debit | credit

July 15: Hugo returned one computer from the July 5 sale. The computer sold for $1,800 and the cost was $1,080. Quiz Computers issued a refund to the customer.

Begin by recording the refund to the customer. Do not record the return of the merchandise inventory yet. We will do that in the following step.

date | accounts and explanation | debit | credit

Now journalize the return of the merchandise inventory from the July 15 return.

date | accounts and explanation | debit | credit

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