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.

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Description: Cornerstone Exercise 6-21Recording Sales TransactionsMathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the monthof April:a. On April 1, Mathis purchased merchandise on account from Reece

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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