Chapter 5, Problem S5.4SE

Journalizing sales transactions

Learning Objective 3

Journalize the following sales transactions for Salem Sportswear. Explanations are not required. The company estimates sales returns at the end of each month.

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Jul 1 Salem sold $20.000 of men’s sportswear for cash. Cost of goods sold is $10.000,

3 Salem sold $62,000 of women’s sportswear on account, credit terms are 3110, n/30. Cost of goods is $31,000.

5 Salem received a $4.500 sales return on damaged goods from the customer on July 1. Cost of goods damaged is $2,250.

10 Salem receives payment from the customer on the amount due, less discount.

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