Jones Surf Shop is entering its third month of business and is excited to open their retail operations. Th
sell specialized surf equipment and accessories alongside their lesson offerings. This week we are goin
adding retail sales will add to the financial processes of the company.
Jeremy placed an order for surfboards from him wholesaler. Create the journal entry that would need to
following inventory purchase transactions.
On March 1, Jones Surf Shop purchased 30 surfboards at a cost of $100 per board. Credit terms were 4/10
A. date of March 1.
B. On March 8 the invoice is paid in full, taking advantage of the offered discount
C. On March 4, 80 wet suits were purchased with cash at a cost of $50 per suit.
D. On March 10, 8 of the wet suits were found to have defective zippers and were returned for a full refund
On March 10 a cash purchase for a variety of surf accessories to stock the checkout stand in the store was
E. inventory purchased was $2500
A. JOURNAL
Date Description Debit Credit
March 1, 2024 Inventory $ 3,000
Accounts Payable $ 3,000
Surfboard Inventory
B. JOURNAL
Date Description Debit Credit
March 8, 2024 Accounts Payable $ 3,000
Cash $ 2,880
Inventory $ 120
Full Invoice Payment
C. JOURNAL
Date Description Debit Credit
March 4, 2024 Inventory $ 4,000
Cash $ 4,000
Wet Suits Inventory
D. JOURNAL
Date Description Debit Credit
March 10, 2024 Accounts Payable $ 400
Sales Returns & Allowances $ 400
Wet Suit Refund
, E. JOURNAL
Date Description Debit Credit
March 10, 2024 Inventory $ 2,500
Cash $ 2,500
Surf Accesory Stock
Now that you have inventory in place it is time to open the doors of the new store. The follow transacti
transactions from the first week the retail store is open.
F. On March 15, Jones Surf Shop sold three surfboards for $750 cash. The cost on the surfboards is $100 each
On March 17, Jones Surf Shop sold a package deal with a surfboard and a wetsuit for $300. The cost for the
G. the wetsuit was $50
On March 19, Jones Surf Shop sold two surfboards for $500 and the customer asked to be invoiced for the
H. customer terms 3/10, n/30. The cost of the surfboards was $200.
On March 21, the customer from March 15 decided to return one of their surfboards. The board is in good
I. returned to inventory. The cost of the board is $100. You give the customer a refund of $250 for the board
J. On March 25 the customer from March 19 brought in cash to pay their balance with the sales discount
Journalize each of the above sales transactions from the first month of retail operations
F. JOURNAL
Date Description Debit Credit
March 15, 2024 Cash $ 750
Revenue $ 750
Surfboard sale
Cost of Goods Sold $ 300
Inventory $ 300
Surfboard Cost Inventory
G. JOURNAL
Date Description Debit Credit
March 17, 2024 Cash $ 300
Revenue $ 300
Package Deal
Cost of Goods Sold $ 150
Inventory $ 150
Package Deal Inventory
H. JOURNAL
Date Description Debit Credit
March 19, 2024 Inventory $ 500
sell specialized surf equipment and accessories alongside their lesson offerings. This week we are goin
adding retail sales will add to the financial processes of the company.
Jeremy placed an order for surfboards from him wholesaler. Create the journal entry that would need to
following inventory purchase transactions.
On March 1, Jones Surf Shop purchased 30 surfboards at a cost of $100 per board. Credit terms were 4/10
A. date of March 1.
B. On March 8 the invoice is paid in full, taking advantage of the offered discount
C. On March 4, 80 wet suits were purchased with cash at a cost of $50 per suit.
D. On March 10, 8 of the wet suits were found to have defective zippers and were returned for a full refund
On March 10 a cash purchase for a variety of surf accessories to stock the checkout stand in the store was
E. inventory purchased was $2500
A. JOURNAL
Date Description Debit Credit
March 1, 2024 Inventory $ 3,000
Accounts Payable $ 3,000
Surfboard Inventory
B. JOURNAL
Date Description Debit Credit
March 8, 2024 Accounts Payable $ 3,000
Cash $ 2,880
Inventory $ 120
Full Invoice Payment
C. JOURNAL
Date Description Debit Credit
March 4, 2024 Inventory $ 4,000
Cash $ 4,000
Wet Suits Inventory
D. JOURNAL
Date Description Debit Credit
March 10, 2024 Accounts Payable $ 400
Sales Returns & Allowances $ 400
Wet Suit Refund
, E. JOURNAL
Date Description Debit Credit
March 10, 2024 Inventory $ 2,500
Cash $ 2,500
Surf Accesory Stock
Now that you have inventory in place it is time to open the doors of the new store. The follow transacti
transactions from the first week the retail store is open.
F. On March 15, Jones Surf Shop sold three surfboards for $750 cash. The cost on the surfboards is $100 each
On March 17, Jones Surf Shop sold a package deal with a surfboard and a wetsuit for $300. The cost for the
G. the wetsuit was $50
On March 19, Jones Surf Shop sold two surfboards for $500 and the customer asked to be invoiced for the
H. customer terms 3/10, n/30. The cost of the surfboards was $200.
On March 21, the customer from March 15 decided to return one of their surfboards. The board is in good
I. returned to inventory. The cost of the board is $100. You give the customer a refund of $250 for the board
J. On March 25 the customer from March 19 brought in cash to pay their balance with the sales discount
Journalize each of the above sales transactions from the first month of retail operations
F. JOURNAL
Date Description Debit Credit
March 15, 2024 Cash $ 750
Revenue $ 750
Surfboard sale
Cost of Goods Sold $ 300
Inventory $ 300
Surfboard Cost Inventory
G. JOURNAL
Date Description Debit Credit
March 17, 2024 Cash $ 300
Revenue $ 300
Package Deal
Cost of Goods Sold $ 150
Inventory $ 150
Package Deal Inventory
H. JOURNAL
Date Description Debit Credit
March 19, 2024 Inventory $ 500
