Answer:
Explanation:
The journal entries are shown below:
On August 6
Merchandise Inventory A/c Dr $22,680 (84 handheld games × $270)
To Account payable A/c $22,680
(Being the inventory purchased is recorded)
On August 7
Merchandise Inventory A/c Dr $470
To Cash A/c $470
(Being the freight cost is paid)
On August 10
Account payable A/c $2,430 (9 handheld games × $270)
To Merchandise inventory A/c $2,430
(Being the goods are returned)
On August 14
Account payable A/c Dr $20,250 ($22,680 - $2,430)
To Merchandise Inventory A/c $405 ($20,250 × 2%)
To Cash A/c $19,845
(Being the amount due is paid)
On August 23
Accounts Receivable A/c Dr $18,560 (64 handheld games × $290)
To Sales revenue A/c $18,560
(Being the sales on credit basis is recorded)
Cost of goods sold A/c Dr $17,335
To Merchandise Inventory A/c $17,335
(Being the total cost is recorded)
