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On March 2, Sheffield Company sold $915,000 of merchandise on account to Splish Brothers Inc., terms 3/10, n/30. The cost of the merchandise sold was $599,000. when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

On March 2, Sheffield Company sold $915,000 of merchandise on account to Splish Brothers Inc., terms 3/10, n/30. The cost of the merchandise sold was $599,000. when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please complete section (a). 

### Brief Exercise 5-05 a-c (Part Level Submission) **Objective**: Prepare the journal entries to record the following transactions on Splish Brothers Inc.'s books using a perpetual inventory system. #### Part (a) **Transaction**: - **Date**: March 2 - **Description**: Sheffield Company sold $915,000 of merchandise on account to Splish Brothers Inc., terms 3/10, n/30. The cost of the merchandise sold was $599,000. - **Instruction**: When an amount is entered, do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. ##### Journal Entry: | **Account Titles and Explanation** | **Debit ($)** | **Credit ($)** | |-----------------------------|-------------|------------| | Accounts Receivable | 599,000 | | | Sales Revenue | | 599,000 | **Note**: The user received feedback indicating the answer is partially correct and was prompted to try again. The values given are $599,000 debited to Accounts Receivable and $599,000 credited to Sales Revenue. #### Part (b) **Instruction**: - The parts of this question must be completed in order. This part will be available when you complete the part above. #### Part (c) **Instruction**: - The parts of this question must be completed in order. This part will be available when you complete the part above. --- ### Explanation of Graphs or Diagrams This specific exercise does not involve any graphs or diagrams. The instructional content is focused on journal entries and the structured layout of account titles, debits, and credits. Additional instructions specify that parts (b) and (c) of the exercise will only be unlocked after part (a) is completed correctly. The provided screenshot shows an educational platform interface where learners should input accounting data correctly. In summary, this exercise aims to test knowledge of accounting principles, particularly in recording sales transactions and understanding terms of sale and the perpetual inventory system.
Transcribed Image Text:### Brief Exercise 5-05 a-c (Part Level Submission) **Objective**: Prepare the journal entries to record the following transactions on Splish Brothers Inc.'s books using a perpetual inventory system. #### Part (a) **Transaction**: - **Date**: March 2 - **Description**: Sheffield Company sold $915,000 of merchandise on account to Splish Brothers Inc., terms 3/10, n/30. The cost of the merchandise sold was $599,000. - **Instruction**: When an amount is entered, do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. ##### Journal Entry: | **Account Titles and Explanation** | **Debit ($)** | **Credit ($)** | |-----------------------------|-------------|------------| | Accounts Receivable | 599,000 | | | Sales Revenue | | 599,000 | **Note**: The user received feedback indicating the answer is partially correct and was prompted to try again. The values given are $599,000 debited to Accounts Receivable and $599,000 credited to Sales Revenue. #### Part (b) **Instruction**: - The parts of this question must be completed in order. This part will be available when you complete the part above. #### Part (c) **Instruction**: - The parts of this question must be completed in order. This part will be available when you complete the part above. --- ### Explanation of Graphs or Diagrams This specific exercise does not involve any graphs or diagrams. The instructional content is focused on journal entries and the structured layout of account titles, debits, and credits. Additional instructions specify that parts (b) and (c) of the exercise will only be unlocked after part (a) is completed correctly. The provided screenshot shows an educational platform interface where learners should input accounting data correctly. In summary, this exercise aims to test knowledge of accounting principles, particularly in recording sales transactions and understanding terms of sale and the perpetual inventory system.
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