Accounting Assignment weekly discussion (Accepted if you have experience )

Please give me two examples ( Computer servicing and networking business) : 1. Purchase of Merchandise Inventory (You only need to record the entry for purchasing inventory on account); 2.Sales of Merchandise Inventory (You only need to record the entry for selling inventory with sales discounts).

For example, I have my guitar tutoring business. Now I want to sell them guitars to make extra revenue.

1. Purchase of Merchandise Inventory

On Feb 1st, I purchased 100 Fender American Stratocastor electronic guitars for $90,000 on account. The purchase of inventory on account is recorded as follows:

Date	Accounts and Explanation	Debit	Credit
Feb. 1st	Merchandise Inventory	90,000
	Accounts Payable		90,000
	Purchased inventory on account.

2. Sales of Merchandise Inventory

On Feb 10th, I sold 10 guitars for $1,299 each on account with terms of 3/10, n/30. The entries to record the sale and cost of goods sold follow:

Date	Accounts and Explanation	Debit	Credit
Feb. 10	Accounts Receivable	$12,600.30
	Sales Revenue ($12,990- 12,990 x 3%)		$12,600.30
	Sale on account less discount
10	Cost of Goods Sold	$9,000
	Merchandise Inventory		$9,000
	Recorded the cost of goods sold