PROBLEM 5.

July  1 Inventory......................................................... 1,620

Accounts Payable.................................. 1,620

 3 Accounts Receivable..................................... 2,200

Sales Revenue........................................ 2,200

Cost of Goods Sold....................................... 1,400

Inventory................................................. 1,400

 9 Accounts Payable.......................................... 1,620

Inventory
  (£1,620 X .02)....................................... 32
Cash........................................................ 1,588

12 Cash................................................................ 2,178
Sales Discounts (£2,200 X .01).....................    22
Accounts Receivable............................. 2,200

17 Accounts Receivable..................................... 1,400

Sales Revenue........................................ 1,400

Cost of Goods Sold.......................................   1,030

Inventory.................................................   1,030

18 Inventory......................................................... 1,900
Accounts Payable.................................. 1,900

Inventory.........................................................   125
Cash........................................................   125

20 Accounts Payable..........................................   300

Inventory.................................................   300

21 Cash................................................................ 1,386
Sales Discounts (£1,400 X .01).....................    14
Accounts Receivable............................. 1,400
PROBLEM 5.1 (Continued)

July 22 Accounts Receivable..................................... 2,400

Sales Revenue........................................ 2,400

Cost of Goods Sold....................................... 1,350

Inventory................................................. 1,350

30 Accounts Payable.......................................... 1,600

Cash........................................................ 1,600

31 Sales Returns and Allowances......................   200

Accounts Receivable.............................   200

Inventory.........................................................   120
Cost of Goods Sold................................   120