Preston Office Furniture uses the periodic inventory system and the gross method of accounting for sales. It had the following transactions during the month of May:
e
\[\begin{array} { | l | l | }
\text { May 3 } & \begin{array} { l }
\text { Sold merchandise to a customer on credit for } \$ 600 , \text { terms } 2 / 10 , \mathrm { n } / 30 . \text { The } \
\text { cost of the merchandise sold was } \$ 350 .
\end{array} \
\hline \text { May 4 } & \begin{array} { l }
\text { Sold merchandise to a customer for cash of } \$ 425 . \text { The cost of the } \
\text { merchandise was } \$ 250 .
\end{array} \
\hline \text { May 6 } & \begin{array} { l }
\text { Sold merchandise to a customer on credit for } \$ 1,300 , \text { terms } 2 / 10 , \mathrm { n } / 30 . \text { Th } \
\text { cost of the merchandise sold was } \$ 750 .
\end{array} \
\hline \text { May 8 } & \begin{array} { l }
\text { The customer from May 3 returned merchandise with a selling price of } \
\$ 100 . \text { The cost of the merchandise returned was } \$ 55 .
\end{array} \
\hline \text { May 15 } & \begin{array} { l }
\text { The customer from May } 6 \text { paid the full amount due, less any appropriate } \
\text { discounts earned. }
\end{array} \
\hline \text { May 31 } & \begin{array} { l }
\text { The customer from May 3 paid the full amount due, less any appropriate } \
\text { discounts earned. }
\end{array}
\end{array}\] \[\begin{array} { | l | l | }
\text { May 3 } & \begin{array} { l }
\text { Sold merchandise to a customer on credit for } \$ 600 , \text { terms } 2 / 10 , \mathrm { n } / 30 . \text { The } \
\text { cost of the merchandise sold was } \$ 350 .
\end{array} \
\hline \text { May 4 } & \begin{array} { l }
\text { Sold merchandise to a customer for cash of } \$ 425 . \text { The cost of the } \
\text { merchandise was } \$ 250 .
\end{array} \
\hline \text { May 6 } & \begin{array} { l }
\text { Sold merchandise to a customer on credit for } \$ 1,300 , \text { terms } 2 / 10 , \mathrm { n } / 30 . \text { Th } \
\text { cost of the merchandise sold was } \$ 750 .
\end{array} \
\hline \text { May 8 } & \begin{array} { l }
\text { The customer from May 3 returned merchandise with a selling price of } \
\$ 100 . \text { The cost of the merchandise returned was } \$ 55 .
\end{array} \
\hline \text { May 15 } & \begin{array} { l }
\text { The customer from May } 6 \text { paid the full amount due, less any appropriate } \
\text { discounts earned. }
\end{array} \
\hline \text { May 31 } & \begin{array} { l }
\text { The customer from May 3 paid the full amount due, less any appropriate } \
\text { discounts earned. }
\end{array}
\end{array}\]
Prepare the required journal entries that Preston Office Furniture must make to record these
transactions.

Question

Preston Office Furniture uses the periodic inventory system and the gross method of accounting for sales. It had the following transactions during the month of May:
e
 \[\begin{array} { | l | l | } 
\text { May 3 } & \begin{array} { l } 
\text { Sold merchandise to a customer on credit for } \$ 600 , \text { terms } 2 / 10 , \mathrm { n } / 30 . \text { The } \
\text { cost of the merchandise sold was } \$ 350 .
\end{array} \
\hline \text { May 4 } & \begin{array} { l } 
\text { Sold merchandise to a customer for cash of } \$ 425 . \text { The cost of the } \
\text { merchandise was } \$ 250 .
\end{array} \
\hline \text { May 6 } & \begin{array} { l } 
\text { Sold merchandise to a customer on credit for } \$ 1,300 , \text { terms } 2 / 10 , \mathrm { n } / 30 . \text { Th } \
\text { cost of the merchandise sold was } \$ 750 .
\end{array} \
\hline \text { May 8 } & \begin{array} { l } 
\text { The customer from May 3 returned merchandise with a selling price of } \
\$ 100 . \text { The cost of the merchandise returned was } \$ 55 .
\end{array} \
\hline \text { May 15 } & \begin{array} { l } 
\text { The customer from May } 6 \text { paid the full amount due, less any appropriate } \
\text { discounts earned. }
\end{array} \
\hline \text { May 31 } & \begin{array} { l } 
\text { The customer from May 3 paid the full amount due, less any appropriate } \
\text { discounts earned. }
\end{array}
\end{array}\] \[\begin{array} { | l | l | } 
\text { May 3 } & \begin{array} { l } 
\text { Sold merchandise to a customer on credit for } \$ 600 , \text { terms } 2 / 10 , \mathrm { n } / 30 . \text { The } \
\text { cost of the merchandise sold was } \$ 350 .
\end{array} \
\hline \text { May 4 } & \begin{array} { l } 
\text { Sold merchandise to a customer for cash of } \$ 425 . \text { The cost of the } \
\text { merchandise was } \$ 250 .
\end{array} \
\hline \text { May 6 } & \begin{array} { l } 
\text { Sold merchandise to a customer on credit for } \$ 1,300 , \text { terms } 2 / 10 , \mathrm { n } / 30 . \text { Th } \
\text { cost of the merchandise sold was } \$ 750 .
\end{array} \
\hline \text { May 8 } & \begin{array} { l } 
\text { The customer from May 3 returned merchandise with a selling price of } \
\$ 100 . \text { The cost of the merchandise returned was } \$ 55 .
\end{array} \
\hline \text { May 15 } & \begin{array} { l } 
\text { The customer from May } 6 \text { paid the full amount due, less any appropriate } \
\text { discounts earned. }
\end{array} \
\hline \text { May 31 } & \begin{array} { l } 
\text { The customer from May 3 paid the full amount due, less any appropriate } \
\text { discounts earned. }
\end{array}
\end{array}\]
 Prepare the required journal entries that Preston Office Furniture must make to record these
transactions.

Quizplus · Accepted Answer

The Answer of Preston Office Furniture uses the periodic inventory system and the gross method of accounting for sales. It had the following transactions during the month of May:
e
 \[\begin{array} { | l | l | } 
\text { May 3 } & \begin{array} { l } 
\text { Sold merchandise to a customer on credit for } \$ 600 , \text { terms } 2 / 10 , \mathrm { n } / 30 . \text { The } \
\text { cost of the merchandise sold was } \$ 350 .
\end{array} \
\hline \text { May 4 } & \begin{array} { l } 
\text { Sold merchandise to a customer for cash of } \$ 425 . \text { The cost of the } \
\text { merchandise was } \$ 250 .
\end{array} \
\hline \text { May 6 } & \begin{array} { l } 
\text { Sold merchandise to a customer on credit for } \$ 1,300 , \text { terms } 2 / 10 , \mathrm { n } / 30 . \text { Th } \
\text { cost of the merchandise sold was } \$ 750 .
\end{array} \
\hline \text { May 8 } & \begin{array} { l } 
\text { The customer from May 3 returned merchandise with a selling price of } \
\$ 100 . \text { The cost of the merchandise returned was } \$ 55 .
\end{array} \
\hline \text { May 15 } & \begin{array} { l } 
\text { The customer from May } 6 \text { paid the full amount due, less any appropriate } \
\text { discounts earned. }
\end{array} \
\hline \text { May 31 } & \begin{array} { l } 
\text { The customer from May 3 paid the full amount due, less any appropriate } \
\text { discounts earned. }
\end{array}
\end{array}\] \[\begin{array} { | l | l | } 
\text { May 3 } & \begin{array} { l } 
\text { Sold merchandise to a customer on credit for } \$ 600 , \text { terms } 2 / 10 , \mathrm { n } / 30 . \text { The } \
\text { cost of the merchandise sold was } \$ 350 .
\end{array} \
\hline \text { May 4 } & \begin{array} { l } 
\text { Sold merchandise to a customer for cash of } \$ 425 . \text { The cost of the } \
\text { merchandise was } \$ 250 .
\end{array} \
\hline \text { May 6 } & \begin{array} { l } 
\text { Sold merchandise to a customer on credit for } \$ 1,300 , \text { terms } 2 / 10 , \mathrm { n } / 30 . \text { Th } \
\text { cost of the merchandise sold was } \$ 750 .
\end{array} \
\hline \text { May 8 } & \begin{array} { l } 
\text { The customer from May 3 returned merchandise with a selling price of } \
\$ 100 . \text { The cost of the merchandise returned was } \$ 55 .
\end{array} \
\hline \text { May 15 } & \begin{array} { l } 
\text { The customer from May } 6 \text { paid the full amount due, less any appropriate } \
\text { discounts earned. }
\end{array} \
\hline \text { May 31 } & \begin{array} { l } 
\text { The customer from May 3 paid the full amount due, less any appropriate } \
\text { discounts earned. }
\end{array}
\end{array}\]
 Prepare the required journal entries that Preston Office Furniture must make to record these
transactions.

Preston Office Furniture Uses the Periodic Inventory System and the Gross