Journalize the following transactions for Hernandez Company. Assume a perpetual inventory system. Also, assume a constant gross profit ratio for all items sold. Make sure to enter the day for each separate transaction. July 2 Sold goods costing $3,000 to Edwards Company for cash, $5,000.
July 8 Edwards Company returned undamaged merchandise, purchased on July 2, for a cash refund, $290.

July 2

Dr Cash$5,000

Cr Sales Revenue$5,000

July 2

Dr Cost of goods sold$3,000

Cr Merchandise inventory$3,000

July 8

Dr Sales returns and allowance $290

Cr Cash$290

July 8

Dr Merchandise inventory $174

Cr Cost of goods sold $174

Explanation:

Preparation of the journal entries for Hernandez Company

July 2

Dr Cash $5,000

Cr Sales Revenue$5,000

July 2

Dr Cost of goods sold$3,000

Cr Merchandise inventory$3,000

July 8

Dr Sales returns and allowance $290

Cr Cash$290

July 8

Dr Merchandise inventory ($3,000*$290 / $5,000)$174

Cr Cost of goods sold $174

net worth is the difference between what you own and what you have. if you exceed your liabilities you have a positive net worth. if your liabilities are greater than your assets you have a negative net worth. its a snapshot of your financial situation. if you calculate your net worth you will see the end result of everything you've earned and spent as of now. net worth statements and all you asked of can you determine where you are, how to get where you want to be, if your spending   to much. honestly it can tell you a lot of things. i can go on, but you can paint the picture from here.

explanation: