BES-2 Prepare the journal entries to record the following transactions on Rowen Company's books: (a) On March 2, Hunt Company sold $900,000 of merchandise to Rowen Company, terms n/30. The cost of the merchandise sold was $600,000. (b) On March 6, Rowen Company returned $130,000 of the merchandise purchased on March 2 The cost of the returned merchandise was $90,000. The merchandise was returned to inven- tory for future resale. (c) On March 31, Hunt Company received the balance due from Rowen Company.
BES-2 Prepare the journal entries to record the following transactions on Rowen Company's books: (a) On March 2, Hunt Company sold $900,000 of merchandise to Rowen Company, terms n/30. The cost of the merchandise sold was $600,000. (b) On March 6, Rowen Company returned $130,000 of the merchandise purchased on March 2 The cost of the returned merchandise was $90,000. The merchandise was returned to inven- tory for future resale. (c) On March 31, Hunt Company received the balance due from Rowen Company.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:BES-2 Prepare the journal entries to record the following transactions on Rowen Company's books:
(a) On March 2, Hunt Company sold $900,000 of merchandise to Rowen Company, terms n/30.
The cost of the merchandise sold was $600,000.
(b) On March 6, Rowen Company returned $130,000 of the merchandise purchased on March 2
The cost of the returned merchandise was $90,000. The merchandise was returned to inven-
tory for future resale.
(c) On March 31, Hunt Company received the balance due from Rowen Company.
Expert Solution
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Step 1
Journal Entry :— It is an act of recording transaction in books of account when transaction occurred.
General Rule :—
- Debit the receiver, Credit the giver.
- Debit what comes in, Credit what goes out.
- Debit all expenses and losses, Credit all income and gains.
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