Journal Entries for Merchandise Transactions on Seller's and Buyer's Books- Perpetual System The following transactions occurred between the Decker Company and Mann Stores, Inc., during March: Mar. 8 Decker sold $20,200 worth of merchandise ($15,800 cost) to Mann Stores with terms of 2/10, n/30. 10 Mann Stores paid freight charges on the shipment from Decker Company, $270. 12 Mann Stores returned $1,300 of the merchandise ($870 cost) shipped on March 8. 17 Decker received full payment for the net amount due from the March 8 sale. 20 Mann Stores returned goods that had been billed originally at $700 ($400 cost). Decker issued a check for $686. Required Prepare the necessary journal entries for (a) the books of Decker Company and (b) the books of Mann Stores, Inc. Assume that both companies use the perpetual inventory system. Sellers journal entries Buyer's journal entries DECKER COMPANY GENERAL JOURNAL Date Description Debit Credit Mar. 8 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer Sold goods to Mann Stores terms 2/10, n/30. 8 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer Cost of goods sold to Mann Stores. 12 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer Issued credit memo to Mann Stores for returned goods. 12 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer Cost of goods returned by Mann Stores. 17 Cash Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer Received payment in full from Mann Stores. 20 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer Cash Answer Answer Paid Mann Stores for returned goods. AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer Cost of goods returned by Mann Stores. Save AnswersNext

Journal Entries for Merchandise Transactions on Seller's and Buyer's Books- Perpetual System The following transactions occurred between the Decker Company and Mann Stores, Inc., during March: Mar. 8 Decker sold $20,200 worth of merchandise ($15,800 cost) to Mann Stores with terms of 2/10, n/30. 10 Mann Stores paid freight charges on the shipment from Decker Company, $270. 12 Mann Stores returned $1,300 of the merchandise ($870 cost) shipped on March 8. 17 Decker received full payment for the net amount due from the March 8 sale. 20 Mann Stores returned goods that had been billed originally at $700 ($400 cost). Decker issued a check for $686. Required Prepare the necessary journal entries for (a) the books of Decker Company and (b) the books of Mann Stores, Inc. Assume that both companies use the perpetual inventory system. Sellers journal entries Buyer's journal entries DECKER COMPANY GENERAL JOURNAL Date Description Debit Credit Mar. 8 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer Sold goods to Mann Stores terms 2/10, n/30. 8 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer Cost of goods sold to Mann Stores. 12 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer Issued credit memo to Mann Stores for returned goods. 12 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer Cost of goods returned by Mann Stores. 17 Cash Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer Received payment in full from Mann Stores. 20 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer Cash Answer Answer Paid Mann Stores for returned goods. AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer Cost of goods returned by Mann Stores. Save AnswersNext

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Journal Entries for Merchandise Transactions on Seller's and Buyer's Books- Perpetual System

The following transactions occurred between the Decker Company and Mann Stores, Inc., during March:

Mar.	8	Decker sold $20,200 worth of merchandise ($15,800 cost) to Mann Stores with terms of 2/10, n/30.
	10	Mann Stores paid freight charges on the shipment from Decker Company, $270.
	12	Mann Stores returned $1,300 of the merchandise ($870 cost) shipped on March 8.
	17	Decker received full payment for the net amount due from the March 8 sale.
	20	Mann Stores returned goods that had been billed originally at $700 ($400 cost). Decker issued a check for $686.

Required

Prepare the necessary journal entries for (a) the books of Decker Company and (b) the books of Mann Stores, Inc. Assume that both companies use the perpetual inventory system.

Sellers journal entries
Buyer's journal entries

DECKER COMPANY GENERAL JOURNAL
Date	Description	Debit	Credit
Mar.	8	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Sold goods to Mann Stores terms 2/10, n/30.
	8	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Cost of goods sold to Mann Stores.
	12	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Issued credit memo to Mann Stores for returned goods.
	12	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Cost of goods returned by Mann Stores.
	17	Cash	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Received payment in full from Mann Stores.
	20	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Cash	Answer	Answer
		Paid Mann Stores for returned goods.
		AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Cost of goods returned by Mann Stores.

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