Journal Entries

Question 1

Accounts Receivable Recording (Gross)

Answer 1

DR Accounts Receivable. XX

CR Sales XX

Question 2

Accounts Receivable Valid Discount (Gross)

Answer 2

DR Cash XX
DR Sales Discounts. XX
CR Accounts Receivable. XX

Question 3

Sales Discounts Forfeited (Net)

Answer 3

DR Cash. XX
CR Sales Discounts Forfeited. XX
CR Accounts Receivable. XX

Question 4

Sales Returns and Allowances

Answer 4

DR Sales Returns and Allowances. XX

CR Accounts Receivable XX

Question 5

Direct Write Off Method

Answer 5

DR Bad Debt Expense

CR Accounts Receivable

Question 6

Direct Write Off Method Recovery (Previously Written off)

Answer 6

DR Cash

Cr Bad Debts Recovered

Question 7

Allowance Method End of period Entry

Answer 7

DR Bad Debt Expense

Cr Allowance for Doubtful Accounts

Question 8

Allowance Method (write off)

Answer 8

Dr Allowance for Doubtful Accounts

Cr Accounts Receivable

Question 9

Allowance Method (Recovery of Account)

Answer 9

Dr Accounts Receivable
CR Allowance for Doubtful Accounts

Dr Cash
CR Accounts Receivable

Question 10

Simple Interest Note Entries

Answer 10

Initial date
DR Notes Receivable
CR Sales

Interest payment date
DR Cash
CR Interest Revenue

Accrued Interest
DR Interest Receivable
CR Interest Revenue

Interest payment with accrued interest
DR Cash
CR Interest Receivable
CR Interest Revenue

Question 11

Inventory Perpetual Entries

Answer 11

Inventory on account
DR Merchandise Inventory
CR Accounts Payable

Paid Delivery Charges
DR Merchandise Inventory
CR Cash

Return Damaged Inventory
DR Accounts Payable
CR Merchandise

Merchandise with discount
DR Accounts Payable
CR Merchandise Inventory
CR Cash

Sold Merchandise on Account
DR Accounts Receivable
CR Sales

DR Cost of Goods Sold
CR Merchandise Inventory