Hinds Company sold merchandise to Peter Company on account for $146,000 with credit terms of ?/10, n/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: (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (1) the sale of merchandise. (2) the return of merchandise. (3) the collection on account.
Hinds Company sold merchandise to Peter Company on account for $146,000 with credit terms of ?/10, n/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: (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (1) the sale of merchandise. (2) the return of merchandise. (3) the collection on account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Munabhai
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Hinds Company sold merchandise to Peter Company on account for $146,000 with credit terms of ?/10, n/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: (Credit account titles are automatically indented when the amount is
entered. Do not indent manually. Record journal entries in the order presented in the problem.)
(1) the sale of merchandise.
(2) the return of merchandise.
(3) the collection on account.
Transaction Account Titles and Explanation
1.
2.
(To record credit sale.)
(To record cost of good sold.)
(To record returned goods.)
Debit
|
Credit
TU
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