Practice Problem 2

Continuing with the Bell Tower example used in Practice Problem 1, use the following information to complete this practice problem.

General Journal
Date	Accounts and explanation	Debit	Credit
Jan. 8	Cash	$800	-
-	Sales	-	$800
-	Cash sale.	-	-
-	Cost of goods sold	$600	-
-	Merchandise inventory	-	$600
-	Recorded to cost of goods sold.	-	-
Jan. 21	Accounts receivable	$2,500	-
-	Sales	-	$2,500
-	On account.	-	-
-	Cost of goods sold	$1,875	-
-	Merchandise inventory	-	$1,875
-	Recorded to cost of goods sold.	-	-
Jan. 24	Sales returns and allowances	$100	-
-	Accounts receivable	-	$100
-	Received returned goods.	-	-
-	Merchandise inventory	$75	-
-	Cost of goods sold	-	$75
-	Placed goods back in inventory.	-	-
Jan. 28	Cash	$2,352	-
-	Sales discount	$48	-
-	Accounts receivable	-	$2,400
-	Received returned goods.	-	-

Jan. 8	BTC sold $800 in merchandise to a cash customer. The cost of the merchandise sold was $600.
Jan. 21	BTC sold $2,500 in merchandise to a credit customer on a store account (credit terms 2/10, n/30). The cost of the merchandise sold was $1,875.
Jan. 24	BTC accepted a return of $100 in merchandise from the Jan. 21 customer. The cost of the merchandise returned was $75.
Jan. 28	BTC received payment from the Jan. 21 credit customer.

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