Prepare the necessary journal entries to record the following transactions, assuming Eustace Company uses a perpetual inventory system. (a) Eustace sells $45,000 of merchandise, terms 1/10, n/30. The merchandise cost $30,000. (b) The customer in (a) returned $4,000 of merchandise to Eustace. The merchandise returned cost $2,400. (c) Eustace received the balance due within the discount period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation (a) Debit Credit
Prepare the necessary journal entries to record the following transactions, assuming Eustace Company uses a perpetual inventory system. (a) Eustace sells $45,000 of merchandise, terms 1/10, n/30. The merchandise cost $30,000. (b) The customer in (a) returned $4,000 of merchandise to Eustace. The merchandise returned cost $2,400. (c) Eustace received the balance due within the discount period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation (a) Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Prepare the necessary journal entries to record the following transactions, assuming Eustace Company uses a perpetual inventory
system.
(a)
(b)
(c)
(Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
No. Account Titles and Explanation
(a)
Eustace sells $45,000 of merchandise, terms 1/10, n/30. The merchandise cost $30,000.
The customer in (a) returned $4,000 of merchandise to Eustace. The merchandise returned cost $2,400.
Eustace received the balance due within the discount period.
(b)
(c)
(To record credit sale.)
(To record cost of good sold.)
(To record goods returned.)
(To record cost of good returned.)
Debit
Credit
K
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