Question

Prepare the journal entries to record these transactions on the books of Sheffield Co. under a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Exercise 5-02 a-b (Part Level Submission) (Video) Information related to Sheffield Co. is presented below. 1. On April 5, purchased merchandise on account from Skysong Company for $29,500, terms 4/10, net/30, FOB shipping point. 2. On April 6, paid freight costs of $960 on merchandise purchased from Skysong. 3. On April 7, purchased equipment on account for $45,200. 4. On April 8, returned damaged merchandise to Skysong Company and was granted a $5,800 credit for returned merchandise. 5. On April 15, paid the amount due to Skysong Company in full.

Answer 1

Journal entry

Date	General Journal	Debit	Credit
Apr 5	Merchandise inventory	29500
	Account payable		29500
Apr 6	Merchandise inventory	960
	Cash		960
Apr 7	Equipment	45200
	Account payable		45200
Apr 8	Account payable	5800
	Merchandise inventory		5800
Apr 15	Account payable (29500-5800)	23200
	cash (23200*96%)		22272
	Merchandise inventory		928