im struggling with this question Prepare the journal entries to record the following sales transactions in Monty Corp.’s books. Monty uses a perpetual inventory system. (List all debit entries before credit entries. 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.)Jan.2 Monty sold $44,000 of goods to Xtra Inc., terms n/45, FOB destination. The cost of the goods sold was $24,640. Monty expected a return rate of 15%. 5 The appropriate company paid freight costs of $880. 6 Xtra returned $5,600 of the merchandise purchased from Monty on January 2, because it was not needed. The cost of the merchandise returned was $3,136, and it was restored to inventory. 11 Monty received the balance due from Xtra. (To record cost of goods returned)11 DateAccount Titles and ExplanationDebitCreditJan. 2aRectandular Snip(To record credit sale)2(To record cost of goods sold)6(To record return of goods)6

Journal entries refer to the recording of transactions in an appropriate way. With the help of…

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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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im struggling with this question

Prepare the journal entries to record the following sales transactions in Monty Corp.’s books. Monty uses a perpetual inventory system. (List all debit entries before credit entries. 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.)

Jan.	2	Monty sold $44,000 of goods to Xtra Inc., terms n/45, FOB destination. The cost of the goods sold was $24,640. Monty expected a return rate of 15%.
	5	The appropriate company paid freight costs of $880.
	6	Xtra returned $5,600 of the merchandise purchased from Monty on January 2, because it was not needed. The cost of the merchandise returned was $3,136, and it was restored to inventory.
	11	Monty received the balance due from Xtra.

Date
Account Titles and Explanation
Debit
Credit
Jan. 2
a
Rectandular Snip
(To record credit sale)
2
(To record cost of goods sold)
6
(To record return of goods)
6

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