Study the following transactions that occurred during August 2022 for Renwick & Co. Aug 2 – Renwick & Co. sold 40 office desks costing $2,000 each, at a unit price of $4,500 to Shams Ltd. Terms: 2/10, n/30. Aug 7 – Shams Ltd. Returned for full credit 6 of the desks acquired on August 2 because they were of the incorrect size and style. Aug 8 – Renwick & Co. returned the office desks to its inventory. Aug 9 – Renwick & Co. received payment by cheque from Shams Ltd. for 30 office desks. Aug 27 – Renwick & Co. received payment in cash from Shams Ltd. in full settlement for the remaining office desks acquired on August 2. Renwick & Co. uses the net method to record sales and cash discounts and the perpetual inventory system. You may copy and paste from this list: Accounts receivable Discount Premium Bad debt expense Interest income Sales discounts Bank Interest receivable Sales discounts forfeited Cash Inventory Sales returns Cost of Goods Sold Notes receivable Sales revenue COGS Par Service revenue REQUIRED: Prepare the necessary journal entries for the following dates for Renwick & Co.
Study the following transactions that occurred during August 2022 for Renwick & Co. Aug 2 – Renwick & Co. sold 40 office desks costing $2,000 each, at a unit price of $4,500 to Shams Ltd. Terms: 2/10, n/30. Aug 7 – Shams Ltd. Returned for full credit 6 of the desks acquired on August 2 because they were of the incorrect size and style. Aug 8 – Renwick & Co. returned the office desks to its inventory. Aug 9 – Renwick & Co. received payment by cheque from Shams Ltd. for 30 office desks. Aug 27 – Renwick & Co. received payment in cash from Shams Ltd. in full settlement for the remaining office desks acquired on August 2. Renwick & Co. uses the net method to record sales and cash discounts and the perpetual inventory system. You may copy and paste from this list:
REQUIRED:
Prepare the necessary
JOURNAL ENTRY
Journal Entries is the process of Recording Financial & Non Financial Transactions is the proper formate. The Journal Entries can Consist of Several Recording each of Which is either a Debit or a Credit.
Golden rule of Journal Entries :—
- Debit what Comes in Credit What Goes Out
- Debit the Receiver Credit the Giver
- Debit all expenses & Losses Credit all Incomes & Gains
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