Date Account

titles & Explanations Debit Credit

1-Jun Inventory 1,800

Accounts payable- 1,800

3-Jun Accounts receivable 3,000

sales 3,000

(to record credit sale)

cost of goods sold 1,500

Inventory 1,500

(to record cost of merchandise sold)

6-Jun Accounts payable- 100

Inventory 100

9-Jun Accounts payable- 1,700

Inventory (1700*2%) 34

cash (1700*98%) 1666

15-Jun Cash 3000

Accounts receivable 3,000

17-Jun Accounts receivable 2,400

sales 2,400

(to record credit sale)

cost of goods sold 1,440

Inventory 1,440

20-Jun Inventory 2,400

Accounts payable- 2,400

(to record cost of merchandise sold)

24-Jun Cash (2400*99%) 2,376

Sales discount (2400*1%) 24

Accounts receivable 2,400

26-Jun Accounts payable- 2,400

Inventory (2400*1%) 24

cash (2400*99%) 2376

28-Jun Accounts receivable 1,400

sales 1,400

(to record credit sale)

cost of goods sold 970

Inventory 970

(to record cost of merchandise sold)

30-Jun Sales return and allowance 130

Accounts receivable 130

Inventory 78

cost of goods sold 78

FOB destination - title to the goods passes from the seller to the buyer when the

goods reach the destination hence the seller is required to pay the freight.