Cornerstone Exercise 6-21 Recording Sales Transactions Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April: a. On April 1, Mathis purchased merchandise on account from Reece with credit terms of 2/10, n/30. The selling price of the merchandise was $3,100, and the cost of the merchandise sold was $2,225. b. On April 1, Mathis paid freight charges of $250 cash to have the goods delivered to its warehouse. c. On April 8, Mathis returned $800 of the merchandise which had originally cost Reece $500. d. On April 10, Mathis paid Reece the balance due. Required: Prepare the journal entries to record these transaction on Reece's books. Assume that Reece uses the net method to record sales on account. For a compound transaction, if an amount box does not require an entry, leave it blank.
Cornerstone Exercise 6-21 Recording Sales Transactions Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April: a. On April 1, Mathis purchased merchandise on account from Reece with credit terms of 2/10, n/30. The selling price of the merchandise was $3,100, and the cost of the merchandise sold was $2,225. b. On April 1, Mathis paid freight charges of $250 cash to have the goods delivered to its warehouse. c. On April 8, Mathis returned $800 of the merchandise which had originally cost Reece $500. d. On April 10, Mathis paid Reece the balance due. Required: Prepare the journal entries to record these transaction on Reece's books. Assume that Reece uses the net method to record sales on account. For a compound transaction, if an amount box does not require an entry, leave it blank.
Chapter1: Financial Statements And Business Decisions
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![Cornerstone Exercise 6-21
Recording Sales Transactions
Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month
of April:
a. On April 1, Mathis purchased merchandise on account from Reece with credit terms of 2/10, n/30. The selling price of the
merchandise was $3,100, and the cost of the merchandise sold was $2,225.
b. On April 1, Mathis paid freight charges of $250 cash to have the goods delivered to its warehouse.
c. On April 8, Mathis returned $800 of the merchandise which had originally cost Reece $500.
d. On April 10, Mathis paid Reece the balance due.
Required:
Prepare the journal entries to record these transaction on Reece's books. Assume that Reece uses the net method to record
sales on account. For a compound transaction, if an amount box does not require an entry, leave it blank.
April 1
(Recorded sale on account)
April 1
April 8
April 8
(Recorded cost of merchandise sold)
(Recorded return of merchandise)
☐ ☐](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2ac292fe-106c-470b-8424-bed5fea67afc%2F0243ff24-1ad1-465c-8ead-0a825ee8c4bd%2Furq7wlt_processed.png&w=3840&q=75)
Transcribed Image Text:Cornerstone Exercise 6-21
Recording Sales Transactions
Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month
of April:
a. On April 1, Mathis purchased merchandise on account from Reece with credit terms of 2/10, n/30. The selling price of the
merchandise was $3,100, and the cost of the merchandise sold was $2,225.
b. On April 1, Mathis paid freight charges of $250 cash to have the goods delivered to its warehouse.
c. On April 8, Mathis returned $800 of the merchandise which had originally cost Reece $500.
d. On April 10, Mathis paid Reece the balance due.
Required:
Prepare the journal entries to record these transaction on Reece's books. Assume that Reece uses the net method to record
sales on account. For a compound transaction, if an amount box does not require an entry, leave it blank.
April 1
(Recorded sale on account)
April 1
April 8
April 8
(Recorded cost of merchandise sold)
(Recorded return of merchandise)
☐ ☐
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