Prepare the journal entries to record the following transactions on Pharoah Company’s books using a perpetual inventory system. (a) On March 2, Shamrock Company sold $897,900 of merchandise to Pharoah Company on account, terms 2/10, n/30. The cost of the merchandise sold was $594,200. (b) On March 6, Pharoah Company returned $100,900 of the merchandise purchased on March 2. The cost of the merchandise returned was $67,500. (c) On March 12, Shamrock Company received the balance due from Pharoah Company.
Prepare the journal entries to record the following transactions on Pharoah Company’s books using a perpetual inventory system. (a) On March 2, Shamrock Company sold $897,900 of merchandise to Pharoah Company on account, terms 2/10, n/30. The cost of the merchandise sold was $594,200. (b) On March 6, Pharoah Company returned $100,900 of the merchandise purchased on March 2. The cost of the merchandise returned was $67,500. (c) On March 12, Shamrock Company received the balance due from Pharoah Company.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare the
| (a) | On March 2, Shamrock Company sold $897,900 of merchandise to Pharoah Company on account, terms 2/10, n/30. The cost of the merchandise sold was $594,200. | |
| (b) | On March 6, Pharoah Company returned $100,900 of the merchandise purchased on March 2. The cost of the merchandise returned was $67,500. | |
| (c) |
On March 12, Shamrock Company received the balance due from Pharoah Company. |
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