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 Debit Credit 1. (To record credit sale.) (To record cost of good sold.) 2. (To record returned goods.) (To record cost of returned goods.) 3.
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 Debit Credit 1. (To record credit sale.) (To record cost of good sold.) 2. (To record returned goods.) (To record cost of returned goods.) 3.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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
(1) the sale of merchandise.
(2) the return of merchandise.
(3) the collection on account.
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Transaction
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Account Titles and Explanation
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Debit
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Credit
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(To record credit sale.)
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(To record cost of good sold.)
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(To record returned goods.)
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(To record cost of returned goods.)
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