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On June 10, Larkspur Company purchased $7,200 of merchandise from Crane Company, on account, terms 3/10, n/30. Larkspur pays the freight costs of $430 on June 11. Goods totaling $200 are returned to Crane for credit on June 12. On June 19, Larkspur Company pays Crane Company in full, less the purchase discount. Both companies use a perpetual inventory system. Prepare separate entries for each transaction for Crane Company. The merchandise purchased by Larkspur on June 10 cost Crane $2,740, and the goods returned cost Crane $140. (If no entry is required, select "No Entry" for the account titles and enter O for the amount in the relevant debit OR credit box. Entering zero in ALL boxes will result in the question being marked incorrect. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation June 10 Accounts Receivable Debit 7,200 Credit Sales Revenue (To record credit sale) June 10 Cost of Goods Sold Inventory June 10 (To record cost of goods sold) Inventory Cost of Goods Sold June 12 Sales Returns and Allowances Accounts Receivable (To record credit for receipt of goods returned) June 12 Sales Returns and Allowances Accounts Receivable (To record cost of goods returned) June 19 Cash Sales Discounts Accounts Receivable Solve for items circled in Red. 2,740 140 200 200 6,790 210 7,200 2,740 140 200 200 7,000

On June 10, Larkspur Company purchased $7,200 of merchandise from Crane Company, on account, terms 3/10, n/30. Larkspur pays the freight costs of $430 on June 11. Goods totaling $200 are returned to Crane for credit on June 12. On June 19, Larkspur Company pays Crane Company in full, less the purchase discount. Both companies use a perpetual inventory system. Prepare separate entries for each transaction for Crane Company. The merchandise purchased by Larkspur on June 10 cost Crane $2,740, and the goods returned cost Crane $140. (If no entry is required, select "No Entry" for the account titles and enter O for the amount in the relevant debit OR credit box. Entering zero in ALL boxes will result in the question being marked incorrect. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation June 10 Accounts Receivable Debit 7,200 Credit Sales Revenue (To record credit sale) June 10 Cost of Goods Sold Inventory June 10 (To record cost of goods sold) Inventory Cost of Goods Sold June 12 Sales Returns and Allowances Accounts Receivable (To record credit for receipt of goods returned) June 12 Sales Returns and Allowances Accounts Receivable (To record cost of goods returned) June 19 Cash Sales Discounts Accounts Receivable Solve for items circled in Red. 2,740 140 200 200 6,790 210 7,200 2,740 140 200 200 7,000

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 7MCQ
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Please solve for items circled in Red.

On June 10, Larkspur Company purchased $7,200 of merchandise from Crane Company, on account, terms 3/10, n/30. Larkspur pays the freight costs of $430 on June 11. Goods totaling $200 are returned to Crane for credit on June 12. On June 19, Larkspur Company pays Crane Company in full, less the purchase discount. Both companies use a perpetual inventory system. Prepare separate entries for each transaction for Crane Company. The merchandise purchased by Larkspur on June 10 cost Crane $2,740, and the goods returned cost Crane $140. (If no entry is required, select "No Entry" for the account titles and enter O for the amount in the relevant debit OR credit box. Entering zero in ALL boxes will result in the question being marked incorrect. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation June 10 Accounts Receivable Debit 7,200 Credit Sales Revenue (To record credit sale) June 10 Cost of Goods Sold Inventory June 10 (To record cost of goods sold) Inventory Cost of Goods Sold June 12 Sales Returns and Allowances Accounts Receivable (To record credit for receipt of goods returned) June 12 Sales Returns and Allowances Accounts Receivable (To record cost of goods returned) June 19 Cash Sales Discounts Accounts Receivable Solve for items circled in Red. 2,740 140 200 200 6,790 210 7,200 2,740 140 200 200 7,000
Transcribed Image Text:On June 10, Larkspur Company purchased $7,200 of merchandise from Crane Company, on account, terms 3/10, n/30. Larkspur pays the freight costs of $430 on June 11. Goods totaling $200 are returned to Crane for credit on June 12. On June 19, Larkspur Company pays Crane Company in full, less the purchase discount. Both companies use a perpetual inventory system. Prepare separate entries for each transaction for Crane Company. The merchandise purchased by Larkspur on June 10 cost Crane $2,740, and the goods returned cost Crane $140. (If no entry is required, select "No Entry" for the account titles and enter O for the amount in the relevant debit OR credit box. Entering zero in ALL boxes will result in the question being marked incorrect. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation June 10 Accounts Receivable Debit 7,200 Credit Sales Revenue (To record credit sale) June 10 Cost of Goods Sold Inventory June 10 (To record cost of goods sold) Inventory Cost of Goods Sold June 12 Sales Returns and Allowances Accounts Receivable (To record credit for receipt of goods returned) June 12 Sales Returns and Allowances Accounts Receivable (To record cost of goods returned) June 19 Cash Sales Discounts Accounts Receivable Solve for items circled in Red. 2,740 140 200 200 6,790 210 7,200 2,740 140 200 200 7,000
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