Question

Prepare the journal entries to record the following transactions on Cullumber 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, Marin Company sold $928,800 of merchandise to Cullumber Company on account, terms 2/10, n/30. The cost of the merchandise sold was $511,500.
(b)		On March 6, Cullumber Company returned $108,400 of the merchandise purchased on March 2. The cost of the merchandise returned was $60,800.
(c)		On March 12, Marin Company received the balance due from Cullumber Company.

No.	Date	Account Titles and Explanation	Debit	Credit
(a)	choose a transaction date                                                          March 2March 6March 12	enter an account title	enter a debit amount	enter a credit amount
		enter an account title	enter a debit amount	enter a credit amount
(b)	choose a transaction date                                                          March 2March 6March 12	enter an account title	enter a debit amount	enter a credit amount
		enter an account title	enter a debit amount	enter a credit amount
(c)	choose a transaction date                                                          March 2March 6March 12	enter an account title	enter a debit amount	enter a credit amount
		enter an account title	enter a debit amount	enter a credit amount
		enter an account title	enter a debit amount	enter a credit amount

Answer 1

No.	Date	Account Title	Debit	Credit
(a)	02-Mar	Accounts Receivable - Cullumber Company	$ 9,28,800.00
		Sales Revenue		$ 9,28,800.00
		(To record goods sold on credit )
	02-Mar	Cost of goods sold	$ 5,11,500.00
		Inventory		$ 5,11,500.00
		(To record cost of goods sold )
(b)	06-Mar	Sales Return	$ 1,08,400.00
		Accounts Receivable - Cullumber Company		$ 1,08,400.00
		(To record sales return)
		Inventory	$     60,800.00
		Cost of goods sold		$     60,800.00
(c)	12-Mar	Cash	$ 8,03,992.00
		Accounts Receivable - Cullumber Company		$ 8,03,992.00
		(To record payment received for goods sold )
		((928800-108400)*98%)