Journalize the following inventory merchandise transactions, assuming that the Conquest company uses the perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles. Dec. 1 Conquest purchased $1,500 of merchandise on account. The credit terms were 2/10, n/30. 6 Received payment within the discount period.

Solution and explanation:

The following journal entry will be passed for the inventory merchandise transactions

date accounts & explanation Debit (in dollars) Credit (in dollars)

Dec 1 Account receivable a/c 13100

Sales a/c 13100

The cost of goods sold 8515

Merchandise inventory a/c 8515

(To record the sales)

Dec 6 Cash a/c 12838

sales discount a/c 262

Account receivable a/c 13100

(To record the payment received)

Thus, these two entries will be passed on December 1, and December 6.