Question

Prepare the journal entries to record the following transactions on Sheridan Company’s books using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

(a)        On March 2, Crane Company sold $946,600 of merchandise to Sheridan Company, terms 2/10, n/30. The cost of the merchandise sold was $538,100.

(b)        On March 6, Sheridan Company returned $113,000 of the merchandise purchased on March 2. The cost of the merchandise returned was $63,100.

(c)        On March 12, Crane Company received the balance due from Sheridan Company

Answer 1

Answer 2

ANSWER:

Date	Account titles	Debit ($)	Credit ($)
March 2	Accounts receivable Sales revenue	946600 .	. 946600
March 2	cost of goods sold Merchandise inventory	538100 .	. 538100
March 6	sales return & allowances Accounts receivable	113000 .	. 113000
March 6	merchandise inventory Cost of goods sold	63100 .	. 63100
March 12	Cash sales discount (833600 x 2%) Accounts receivable (946600 - 113000)	816928 16672 .	. . 833600