Question

This information relates to Skysong

 1. On April 5, purchased merchandise from Sheridan Company for $27.200, terms 3/10,n/30.

 2. On April 6, paid freight costs of $780 on merchandise purchased from Sheridan

 3. On April 7, purchased equipment on account for $34,200.

 4. On April 8, returned $4,600 of April 5 merchandise to Sheridan Company.

5. On April 15, paid the amount due to Sheridan Company in full.

Prepare the journal entries to record the transactions listed above on Skysong Co's books. Skysong Co.

Answer 1

Solution of the above problem is as under:

Statement showing Journal Entries to be recorded in the Books of Skysong Co.
Date	Account Titles and Explanation	Debit ($)	Credit ($)
Apr-05	Merchandise Inventory A/c Dr.	27200
	To Accounts Payable-Sheridan Co		27200
	(Being merchandise purchased from Sheridan Co on account)
Apr-06	Freight In Expenses A/c Dr	780
	To Cash A/c		780
	(Being freight paid on purchases made)
Apr-07	Equipment A/c Dr.	34200
	To Accounts Payable A/c		34200
	(Being equipment purchased on account)
Apr-08	Accounts Payable-Sheridan Co. Dr.	4600
	To Merchandise Inventory A/c		4600
	(Being purchases return recorded)
Apr-15	Accounts Payable-Sheridan Co. Dr.	22600
	To Cash A/c		21922
	To Purchase Discount A/c		678
	(Being payment made to Sheridan Co net of Discount 3/10,n/30)