Question

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edugen.wileyplus.com AUDINI Weygandt, Accounting Principles, 13e ey PLUS Help System Announcements CALCULATOR PRINTER VERSION BACK NEXT 156800 Cash ENT RESOURCES 13 EXAM -Choice n 100 -Choice SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT -Choice 130 Choice 58 Choice 2.59 Choice Hinds Company sold merchandise to Peter Company on account for $146,000 with credit terms of 7/10, 1/30. The cost of the merchandise sold was $86,140. During the discount period, Peter Company returned $6,000 of merchandise and paid its account in full (minus the discount) by remitting $137,200 in cash. Both companies use a perpetual inventory system. Prepare the journal entries that Hinds Company made to record: Choice Choice (1) (2) (3) the sale of merchandise. the return of merchandise. the collection on account Choice 118 Choice 7123 204 a- 188 a-b (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit bit Credit sults by Study (1) (To record credit sale) (To record cost of good sold)

Answer 1

1) Journal to record credit sale

Receivable Dr $146,000

To Sale Cr. $146,000

2) Journal to record cost of goods sold

Cost of goods sold Dr $ 86,140

To Inventory Cr. $ 86,140

3) Journal to record credit granted for returned goods

a. Sales Dr. $ 6,000

To Sales return Cr. $ 6,000

d. Sales return Dr. $ 6,000

To Receivable Cr. $ 6,000

4) Journal to record cost of goods returned ($6,000/$146,000*$86,140)

Inventory Dr. $3,540

To Cost of goods sold Cr. $3,540