Lesson 5 - Journal Entries

Question 0

Perpetual
Seller
Purchase/Sale

Answer 0

Dr: Cash/Accounts Receivable
Cr: Sales Revenue

Dr: Cost of Goods Sold
Cr: Inventory

Question 1

Perpetual
Buyer
Purchase/Sale

Answer 1

Dr: Inventory

Cr: Cash/Accounts Payable

Question 2

Periodic
Buyer
Purchase/Sale

Answer 2

Dr: Purchases

Cr: Cash/Accounts Payable

Question 3

Periodic
Seller
Purchase/Sale

Answer 3

Dr: Cash/Accounts Receivable

Cr: Sales Revenue

Question 4

Perpetual
Purchase Return/ Sale Return
Buyer

Answer 4

Dr: Cash/ Accounts Payable

Cr: Inventory

Question 5

Perpetual
Purchase Return/Sale Return
Seller

Answer 5

Dr: Sales Returns and Allowances
Cr: Cash/Accounts Receivable

Dr: Inventory
Cr: Cost of Goods Sold

Question 6

Periodic
Purchase Return/Sale Return
Buyer

Answer 6

Dr: Cash/Accounts Payable

Cr: Purchase Returns and Allowances

Question 7

Periodic
Purchase Return/Sale Return
Seller

Answer 7

Dr: Sales Return and Allowances

Cr: Cash/Accounts Receivable

Question 8

Perpetual
Purchase Allowance/Sale Allowance
Buyer

Answer 8

Dr: Cash/Accounts Payable

Cr: Inventory

Question 9

Perpetual
Purchase Allowance/Sale Allowance
Buyer

Answer 9

Dr: Sales Returns and Allowances

Cr: Cash/Accounts Receivable

Question 10

Periodic
Purchase Allowance/Sale Allowance
Buyer

Answer 10

Dr: Cash/Accounts Payable

Cr: Purchases Returns and Allowances

Question 11

Periodic
Purchase Allowance/Sale Allowance
Seller

Answer 11

Dr: Sales Returns and Allowances

Cr: Cash/Accounts Receivable

Question 12

Perpetual
Purchase Discount/Sales Discount
Buyer

Answer 12

Dr: Accounts Payable
Cr: Cash
Inventory

Question 13

Perpetual
Purchase Discount/Sales Discount
Seller

Answer 13

Dr: Cash
Sales Discount
Cr: Account Receivable

Question 14

Periodic
Purchase Discount/Sales Discount
Buyer

Answer 14

Dr: Accounts Payable
Cr: Cash
Purchase Discount

Question 15

Periodic
Purchase Discount/Sale Discount
Seller

Answer 15

Dr: Cash
Sales Discount
Cr: Accounts Receivable

Question 16

Perpetual
FOB Shipping Point
Buyer
A.) Buyer Pays

Answer 16

Dr: Inventory

Cr: Cash

Question 17

Perpetual
FOB Shipping Point
Buyer
B.) Seller pays first

Answer 17

Dr: Inventory

Cr: Accounts Payable (to Seller)

Question 18

Perpetual
FOB Shipping Point
Seller
A.) Buyer Pays

Answer 18

No Entry

Question 19

Perpetual
FOB Shipping Point
Seller
B.) Seller Pays First

Answer 19

Dr: Accounts Receivable

Cr: Cash (to Shipper)

Question 20

Periodic
FOB Shipping Point
Buyer
A.) Buyer pays

Answer 20

Dr: Freight In

Cr: Cash

Question 21

Periodic
FOB Shipping Point
Buyer
B.) Seller pays first

Answer 21

Dr: Freight In

Cr: Accounts Payable (to seller)

Question 22

Periodic
FOB Shipping Point
Seller
A.) Buyer pays

Answer 22

No Entry

Question 23

Periodic
FOB Shipping Point
Seller
B.) Seller pays first

Answer 23

Dr: Accounts Receivable (from Buyer)

Cr: Cash (to shipper)

Question 24

Perpetual FOB Destination Point Buyer A.) Seller pays

Answer 24

No Transaction

Question 25

Perpetual FOB Destination Point Buyer B.) Buyer pays first

Answer 25

Dr: Accounts Payable (to seller) | Cr: Cash (to shipper)

Question 26

Perpetual FOB Destination Point Seller A.) Seller pays

Answer 26

Dr: Delivery Expense or Freight Out | Cr: Cash

Question 27

Perpetual FOB Destination Point Seller B.) Seller pays first

Answer 27

Dr: Delivery Expense or Freight Out | Cr: Accounts Receivable (to Buyer)

Question 28

Periodic FOB Destination Point Buyer A.) Seller pays

Answer 28

No transaction

Question 29

Periodic FOB Destination Point Buyer B.) Buyer pays first

Answer 29

Dr: Accounts Payable (to Seller) | Cr: Cash (to shipper)

Question 30

Periodic FOB Destination Point Seller A.) Seller pays

Answer 30

Dr: Delivery Expense or Freight Out | Cr: Cash

Question 31

Periodic FOB Shipping Point Seller B.) Buyer pays first

Answer 31

Dr: Delivery Expense or Freight Out | Cr: Accounts Receivable (to Buyer)