Presented below are transactions related to Splish Brothers Inc..1. On December 3, Splish Brothers Inc. sold $586,700 of merchandise on account to Sheffield Co., terms 4/10, n/30, FOB shipping point. The cost of the merchandise sold was $391,300.2. On December 8, Sheffield Co. was granted an allowance of $28,000 for merchandise purchased on December 3.3. On December 13, Splish Brothers Inc. received the balance due from Sheffield Co. Prepare the journal entries to record these transactions on the books of Splish Brothers Inc. using a perpetual inventory system.

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Answered: Presented below are transactions…

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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Presented below are transactions related to Splish Brothers Inc..

1.		On December 3, Splish Brothers Inc. sold $586,700 of merchandise on account to Sheffield Co., terms 4/10, n/30, FOB shipping point. The cost of the merchandise sold was $391,300.
2.		On December 8, Sheffield Co. was granted an allowance of $28,000 for merchandise purchased on December 3.
3.		On December 13, Splish Brothers Inc. received the balance due from Sheffield Co.

Prepare the journal entries to record these transactions on the books of Splish Brothers Inc. using a perpetual inventory system.

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