Appendix I
Review Exercise Solutions
408
b) Journalize the December transactions. Assume the goods were shipped FOB destination.
JOURNAL Page 1
Date
2016
Account Title and Explanation
Debit Credit
Dec 3 Accounts Receivable
50,000
Sales Revenue
50,000
Sold inventory on account
Dec 3 Cost of Goods Sold
35,000
Inventory
35,000
Cost of goods sold for above sale
Dec 6 Delivery Expense
200
Cash
200
Paid freight charges
Dec 8 Sales Returns and Allowances
2,000
Accounts Receivable
2,000
Customer returned incorrect merchandise
Dec 8 Inventory
700
Cost of Goods Sold
700
Inventory returned to stock
Dec 11 Cash
48,000
Sales Discounts
960
Accounts Receivable
47,040
Received payment from customer
