On October 5, Pronghorn Corporation buys merchandise for resale on account from Culver Corporation. The selling price of the goods is $ 5,210, and the cost to Culver Company is $ 3,250. On October 8, Pronghorn returns defective goods with a selling price of $ 670 and a cost of $ 250. It is anticipated that these goods can be resold at a discount at some point in the future for at least their cost of $ 250, if not more. Both companies use a perpetual inventory system. Record the transactions on the books of Culver Corporation. (Credit account titles are automatically indented when the 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.) Date Account Titles and Explanation Debit Credit Oct. 5 (Sale of merchandise on account) 5 (Cost of goods sold recorded) 8 (Return of merchandise) 8 (Return of merchandise, assuming goods are resaleable and returned to inventory
On October 5, Pronghorn Corporation buys merchandise for resale on account from Culver Corporation. The selling price of the goods is $ 5,210, and the cost to Culver Company is $ 3,250. On October 8, Pronghorn returns defective goods with a selling price of $ 670 and a cost of $ 250. It is anticipated that these goods can be resold at a discount at some point in the future for at least their cost of $ 250, if not more. Both companies use a perpetual inventory system. Record the transactions on the books of Culver Corporation. (Credit account titles are automatically indented when the 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.) Date Account Titles and Explanation Debit Credit Oct. 5 (Sale of merchandise on account) 5 (Cost of goods sold recorded) 8 (Return of merchandise) 8 (Return of merchandise, assuming goods are resaleable and returned to inventory
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On October 5, Pronghorn Corporation buys merchandise for resale on account from Culver Corporation. The selling price of the goods is $ 5,210, and the cost to Culver Company is $ 3,250. On October 8, Pronghorn returns defective goods with a selling price of $ 670 and a cost of $ 250. It is anticipated that these goods can be resold at a discount at some point in the future for at least their cost of $ 250, if not more. Both companies use a perpetual inventory system.
Record the transactions on the books of Culver Corporation. (Credit account titles are automatically indented when the 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.)
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Date
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Account Titles and Explanation
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Debit
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Credit
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Oct. 5
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| (Sale of merchandise on account) | |||
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5
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| (Cost of goods sold recorded) | |||
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8
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| (Return of merchandise) | |||
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8
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| (Return of merchandise, assuming goods are resaleable and returned to inventory) |
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