Question: Ace Party Supplies Ltd completed the following transactions during December

Ace Party Supplies, Ltd. completed the following transactions during December. Ace uses the perpetual inventory system in accounting for inventory.
Dec 2 Sold party supplies for $1,800 to Goody Bags on account, with terms of 2/10, n/30, FOB shipping point. The cost of the sale was $1,125.
4 Sold party supplies to a customer for $500, with cost of $350. Customer paid with a credit card. The credit card company charged a 2% service fee.
6 Sold party supplies for $1,200 to Party Queen on account, with terms of 2/10, n/30, FOB shipping point. The cost of the sale was $750.
12 Party Queen returned $200 of the party supplies. The cost of the returned products was $125. These products were returned to the warehouse for resale.
15 Sold party supplies to customer for $320 cash. The cost of the sale was $200.
16 Received payment from Party Queen, less returns and discount.
23 Sold party supplies to a customer for $400, with cost of $280. Customer paid with a debit card. The bank charged a 2% of service fee.
31 Received payment from Goody Bags.
Requirements
1. Record the transactions in the journal.
2. What are the amounts for total sales, sales returns and allowances, and sales discounts to be reported in the income statement?

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  • CreatedJuly 08, 2015
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