On October 5, Sage Hill Company buys merchandise on account from Oriole Company. The selling price of the goods is $5,540, and the cost to Oriole Company is $3,500. On October 8, Sage Hill returns defective goods with a selling price of $900 and a scrap value of $340. Record the transactions of Sage Hill Company, assuming a perpetual approach. (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. List all debit entries before credit entries.) Date Account Titles and Explanation Oct. 5 Sales Returns and Allowances Accounts Receivable Debit 5540 Oct. 8 Sales Returns and Allowances 3500 Inventory Credit 5540 3500
On October 5, Sage Hill Company buys merchandise on account from Oriole Company. The selling price of the goods is $5,540, and the cost to Oriole Company is $3,500. On October 8, Sage Hill returns defective goods with a selling price of $900 and a scrap value of $340. Record the transactions of Sage Hill Company, assuming a perpetual approach. (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. List all debit entries before credit entries.) Date Account Titles and Explanation Oct. 5 Sales Returns and Allowances Accounts Receivable Debit 5540 Oct. 8 Sales Returns and Allowances 3500 Inventory Credit 5540 3500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On October 5, Sage Hill Company buys merchandise on account from Oriole Company. The selling price of the goods is $5,540, and the
cost to Oriole Company is $3,500. On October 8, Sage Hill returns defective goods with a selling price of $900 and a scrap value of
$340.
Record the transactions of Sage Hill Company, assuming a perpetual approach. (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. List all debit entries before credit entries.)
Date
Account Titles and Explanation
Oct. 5
Sales Returns and Allowances
Accounts Receivable
Debit
5540
Oct. 8
Sales Returns and Allowances
3500
Inventory
Credit
5540
3500
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