Principle of Accounts : What are the debit and credit entry for these few questions.?

1.) Sold goods with a cost price of $780 on credit to Jack at $900

2.) Goods at $400 returned by a debtor was taken by owner for personal use.

3.) Cash of $500 received from a debtor in full settlement of $570 was used to pay a creditor

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  • Sandy
    Lv 7
    6 years ago
    Favorite Answer

    1.) Sold goods with a cost price of $780 on credit to Jack at $900

    Dr Accounts receivable $900

    Cr Sales $900

    Dr COGS $780

    Cr Merchandise inventory $780

    2.) Goods at $400 returned by a debtor was taken by owner for personal use.

    Assuming the $400 is the cost taken by the owner,

    Dr Owner - drawings $400

    Cr COGS $400

    You still have to account for the return by the debtor, at the selling price, let's say, $600

    Dr Sales returns and allowances $600

    Cr Accounts receivable $600

    3.) Cash of $500 received from a debtor in full settlement of $570 was used to pay a creditor

    Dr Accounts payable $500

    Dr Sales discounts $70

    Cr Accounts receivable $570

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  • 6 years ago

    1. Credit Sales 900

    Good Sold 900

    2. Goods returned 400

    Good Withdrawn 400

    3. Cash 500

    Bad debt 70

    Creditor 570

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