Question

Prepare the journal entries to record the following transactions on Oriole 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, Oriole Company sold $891,900 of merchandise to Ivanhoe Company, terms 3/10, n/30. The cost of the merchandise sold was $527,400.

(b)On March 6, Ivanhoe Company returned $114,400 of the merchandise purchased on March 2. The cost of the merchandise returned was $64,100. (c)On March 12, Oriole Company received the balance due from Ivanhoe Company.

Answer 1