Question

The following transactions are for Splish Brothers Company.

1.		On December 3, Splish Brothers Company sold $499,800 of merchandise to Sunland Co., on account, terms 2/10, n/30. The cost of the merchandise sold was $317,400.
2.		On December 8, Sunland Co. was granted an allowance of $23,300 for merchandise purchased on December 3.
3.		On December 13, Splish Brothers Company received the balance due from Sunland Co.

(a)

Prepare the journal entries to record these transactions on the books of Splish Brothers. Splish Brothers uses 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.)

Answer 1

Date	General Journal	Debit	Credit
Dec. 03	Accounts receivable	$499,800	-
	Sales revenue	-	$499,800
	Cost of goods sold	$317,400	-
	Merchandise inventory	-	$18,400
Dec. 08	Sales returns and allowances	$23,300	-
	Accounts receivable	-	$23,300
Dec. 13	Cash	$466,970	-
	Sales Discount	$9,530	-
	Accounts receivable	-	$476,500