Patrick Morse returned $305 (selling price) of merchandise to Lapierre Co. The merchandise was purchased on credit. The cost of the merchandise to Lapierre Co. is $205. What would be the journal entry on the books of both the buyer and seller? Assume the perpetual inventory system. (Record debits first, then credits. Exclude explanations from journal entries.)
Patrick Morse returned $305 (selling price) of merchandise to Lapierre Co. The merchandise was purchased on credit. The cost of the merchandise to Lapierre Co. is $205. What would be the journal entry on the books of both the buyer and seller? Assume the perpetual inventory system. (Record debits first, then credits. Exclude explanations from journal entries.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Patrick Morse returned $305 (selling price) of merchandise to
Lapierre Co. The merchandise was purchased on credit. The cost of the merchandise to Lapierre Co. is $205.
What would be the
Transcribed Image Text:Patrick Morse returned $305 (selling price) of merchandise to Lapierre Co. The merchandise was purchased on credit. The cost of the merchandise to Lapierre Co. is $205. What would be the journal entry on the books of both the buyer and seller? Assume the perpetual inventor
(Record debits first, then credits. Exclude explanations from journal entries.)
Patrick Morse returned $305 (selling price) of merchandise to Lapierre Co. The merchandise was purchased on credit. The cost of the merchandise to Lapierre Co. is $205. Assume the perpetual inventory system.
Record the entry for the buyer (Patrick Morse)
Journal Entry
Date
Accounts
PR
Dr.
Cr.
Patrick Morse returned $305 (selling price) of merchandise to Lapierre Co. The merchandise was purchased on credit. The cost of the merchandise to Lapierre Co. is $205. Assume the perpetual inventory system.
Record the entry for the seller (Lapierre). Start by recording the revenue adjustment from the return. (Do not record the cost related to the sales return. We will do that in the following step.)
Journal Entry
Date
Accounts
PR
Dr.
Cr.
Now record the cost of the returned merchandise.
Journal Entry
Date
Accounts
PR
Dr.
Cr.
Choose from any list or enter any number in the input fields and then continue to the next question.
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