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Journal Entries for Sales

Assume that a company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. A sales return for credit on account would be recorded in the:

sales journal.
general journal.
cash receipts journal.
accounts receivable ledger.

Martha Company has an established petty cash fund in the amount of $500. The fund was last reimbursed on November 30. At the end of December, the fund contained the following petty cash receipts:
December 4 Freight chare for merchandise purchased$ 42
December 7Freight charge for delivery to customer$ 66
December 12Purchase of office supplies$ 31
December 18Donation to charitable organization$ 50
If, in addition to these receipts, the petty cash fund contains $301 of cash, the journal entry to reimburse the fund on December 31 will include:

a debit to Transportation-In of $73.
a debit to Transportation-Out of $73.
a credit to Cash Over and Short of $10.
a debit to Cash Over and Short of $10.

In the process of reconciling Marks Enterprises' bank statement for September, Mr. Marks compiles the following information:
Cash balance per company books on September 30$6,275
Deposits in transit at month-end$1,300
Outstanding checks at month-end$ 620
Bank charge for printing new checks$ 45
Note receivable and interest collected by bank on Marks' behalf $ 770
A check given to Marks during the month by a customer is returned by the bank as NSF$ 480
The adjusted cash balance per the books on September 30 is:

$ 6,900
$ 8,160
$ 4,600
$ 6,520

At the end of the day, the cash register's record shows $1,250, but the count of cash in the cash register is $1,245. The correct entry to record the cash sales is:

Cash $1,245
Sales $1,245
Cash $1,245
Cash over and short $5
Sales $1,250
Cash $1,250
Sales $1,250
Cash $1,250
Sales $1,245
Cash over and short $5

Solution Preview

Solution is provided with calculations, related statements and required journal entries in the word document attached.

1 Replenishing the petty cash fund:
Answer: a debit to Cash Over and Short of $10.
Journal ...

Solution Summary

The expert examines journal entries for sales.