Question

artFile Edit View History Bookmarks Window Help ex Mon Feb 17 10:32:32 box 120057 1 30 unread sement education wiley.com WAS A Prayer Tool LUUOLOMCE.2008 View Policies Current Attempt in Progress Prepare the journal entries to record the following transactions on Crane Company's books using a perpetual inventory system. If no antry is required, select "No Entry" for the account titles and enter for the amounts. Cred countries are automatically indented when amounts onfered. Do not indent manually Record journal entries in the order presented in the problem.) (a) On March 2, Crane Company sold 5000,700 of merchandise to Larkspur Company on account, terms 3/10, 1/30. The cost of the merchandise sold was $586,400. b) On March 6, Larkspur Company returned $117,700 of the merchandise purchased on March 2. The cost of the merchandise returned was $63,800 Id On March 12, Crane Company received the balance due from Larkspur Company No. Date Account Titles and Explanation Debit Credit JU (To record sale of merchandise)

Answer 1

No. Credit Date Mar. 02 Debit 889,700 a. $ $ 889,700 $ 586,400 $ 586,400 Mar. 06 $ 117,700 Account Titles and Explanation Accounts Receivable Sales Revenue (To record sale of merchandise) Cost of Goods Sold Merchandise Inventory Sales Returns and Allowances Accounts Receivable (To record return of merchandise) Merchandise Inventory Cost of Goods Sold Cash Sales Discounts ($772,000 * 3%) Accounts Receivable $ 117,700 $ 63,800 $ 63,800 Mar. 12 $ $ 748,840 23,160 $ 772,000