On October 5, Tamarisk Company buys merchandise on account from Pronghorn Company. The selling price of the goods is $4,660, and the cost to Pronghorn Company is $3,100. On October 8, Tamarisk returns defective goods with a selling price of $650 and a fair value of $235. Record the transactions on the books of Pronghorn Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
On October 5, Tamarisk Company buys merchandise on account from Pronghorn Company. The selling price of the goods is $4,660, and the cost to Pronghorn Company is $3,100. On October 8, Tamarisk returns defective goods with a selling price of $650 and a fair value of $235. Record the transactions on the books of Pronghorn Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:On October 5, Tamarisk Company buys merchandise on account from Pronghorn Company. The selling price of the goods is $4,660,
and the cost to Pronghorn Company is $3,100. On October 8, Tamarisk returns defective goods with a selling price of $650 and a fair
value of $235.
Record the transactions on the books of Pronghorn Company. (Credit account titles are automatically indented when amount is entered. Do
not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit
entries.)
Date Account Titles and Explanation
(To record credit sales)
(To record cost of goods sold)
(To record credit granted for receipt
of returned goods)
(To record fair value of goods returned)
Debit
Credit
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