The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec. 3 (a) 4 8 13 Sandhill Company sold merchandise to Wildhorse Co. for $37,000, terms 2/10, n/30, FOB destination. This merchandise cost Sandhill Company $18,000. The correct company paid freight charges of $775. Wildhorse Co. returned unwanted merchandise to Sandhill. The returned merchandise had a sale price of $2.000 and a cost of $990. It was restored to inventory. Sandhill Company received the balance due from Wildhorse Co. Prepare the journal entries to record these transactions on the books of Sandhill Company. (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 O for
The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec. 3 (a) 4 8 13 Sandhill Company sold merchandise to Wildhorse Co. for $37,000, terms 2/10, n/30, FOB destination. This merchandise cost Sandhill Company $18,000. The correct company paid freight charges of $775. Wildhorse Co. returned unwanted merchandise to Sandhill. The returned merchandise had a sale price of $2.000 and a cost of $990. It was restored to inventory. Sandhill Company received the balance due from Wildhorse Co. Prepare the journal entries to record these transactions on the books of Sandhill Company. (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 O for
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
78.
![***
The following merchandise transactions occurred in December. Both companies use a perpetual inventory system.
Dec. 3
(a)
4
8
13
Sandhill Company sold merchandise to Wildhorse Co. for $37,000, terms 2/10, n/30, FOB destination. This merchandise
cost Sandhill Company $18,000.
The correct company paid freight charges of $775.
Wildhorse Co. returned unwanted merchandise to Sandhill. The returned merchandise had a sale price of $2,000 and a
cost of $990. It was restored to inventory.
Sandhill Company received the balance due from Wildhorse Co.
Prepare the journal entries to record these transactions on the books of Sandhill Company. (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 O for](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffb6d72a6-8974-4bfb-9c04-cc9e9e396429%2Fed9ca3f4-52af-4599-939e-ec8136740c8a%2Fidekgig_processed.jpeg&w=3840&q=75)
Transcribed Image Text:***
The following merchandise transactions occurred in December. Both companies use a perpetual inventory system.
Dec. 3
(a)
4
8
13
Sandhill Company sold merchandise to Wildhorse Co. for $37,000, terms 2/10, n/30, FOB destination. This merchandise
cost Sandhill Company $18,000.
The correct company paid freight charges of $775.
Wildhorse Co. returned unwanted merchandise to Sandhill. The returned merchandise had a sale price of $2,000 and a
cost of $990. It was restored to inventory.
Sandhill Company received the balance due from Wildhorse Co.
Prepare the journal entries to record these transactions on the books of Sandhill Company. (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 O for
![19°C
the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)
Date
Account Titles and Explanation
(To record sales on account.).
(To record cost of goods sold.)
skak
>
Debit
G
ENG
Credit
6:43 PM](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffb6d72a6-8974-4bfb-9c04-cc9e9e396429%2Fed9ca3f4-52af-4599-939e-ec8136740c8a%2Fbszwo0i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:19°C
the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)
Date
Account Titles and Explanation
(To record sales on account.).
(To record cost of goods sold.)
skak
>
Debit
G
ENG
Credit
6:43 PM
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education