On June 10, Splish Brothers Company purchased $6.700 of merchandise from Sunland Company, on account, terms 2/10, n/30. Splish Brothers pays the freight costs of $380 on June 11. Goods totaling $700 are returned to Sunland for credit on June 12. On June 19. Splish Brothers Company pays Sunland Company in full, less the purchase discount. Both companies use a perpetual inventory system.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Please see below. Note that these pictures go together. I need help with Part b. The main information needed to answer Part b is on Part a's picture.
On June 10, Splish Brothers Company purchased $6,700 of merchandise from Sunland Company, on account, terms 2/10, n/30. Splish
Brothers pays the freight costs of $380 on June 11. Goods totaling $700 are returned to Sunland for credit on June 12. On June 19,
Splish Brothers Company pays Sunland Company in full, less the purchase discount. Both companies use a perpetual inventory system.
(a)
Your answer has been saved. See score details after the due date.
Prepare separate entries for each transaction on the books of Splish Brothers Company. (If no entry is required, select "No Entry" for
the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent
manually. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
June 10 v
Inventory
6,700
Accounts Payable
6,700
June 11
Inventory
380
Cash
380
June 12
Accounts Payable
700
700
Inventory
Transcribed Image Text:On June 10, Splish Brothers Company purchased $6,700 of merchandise from Sunland Company, on account, terms 2/10, n/30. Splish Brothers pays the freight costs of $380 on June 11. Goods totaling $700 are returned to Sunland for credit on June 12. On June 19, Splish Brothers Company pays Sunland Company in full, less the purchase discount. Both companies use a perpetual inventory system. (a) Your answer has been saved. See score details after the due date. Prepare separate entries for each transaction on the books of Splish Brothers Company. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit June 10 v Inventory 6,700 Accounts Payable 6,700 June 11 Inventory 380 Cash 380 June 12 Accounts Payable 700 700 Inventory
(b)
Prepare separate entries for each transaction for Sunland Company. The merchandise purchased by Splish Brothers on June 10
cost Sunland $2,870, and the goods returned cost Sunland $240. (If no entry is required, select "No entry" for the account titles and
enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal
entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
(To record credit sale)
(To record cost of goods sold)
(To record credit sale)
>
Transcribed Image Text:(b) Prepare separate entries for each transaction for Sunland Company. The merchandise purchased by Splish Brothers on June 10 cost Sunland $2,870, and the goods returned cost Sunland $240. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record credit sale) (To record cost of goods sold) (To record credit sale) >
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