The following transactions are for Sheridan Company. On December 3, Sheridan Company sold $613,400 of merchandise to Grouper Co., on account, terms 2/10, n/30, FOB destination. Sheridan paid $370 for freight charges. The cost of the merchandise sold was $354,500. 1. On December 8, Grouper Co. was granted an allowance of $29,400 for merchandise purchased on December 3. On December 13, Sheridan Company received the balance due from Grouper Co. 3. (a) Prepare the journal entries to record these transactions on the books of Sheridan Company using a perpetual inventory system. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 3 Accounts Receivable 613400 Sales Revenue 613400 (To record credit sale) (To record cost of merchandise sold) 2.
The following transactions are for Sheridan Company. On December 3, Sheridan Company sold $613,400 of merchandise to Grouper Co., on account, terms 2/10, n/30, FOB destination. Sheridan paid $370 for freight charges. The cost of the merchandise sold was $354,500. 1. On December 8, Grouper Co. was granted an allowance of $29,400 for merchandise purchased on December 3. On December 13, Sheridan Company received the balance due from Grouper Co. 3. (a) Prepare the journal entries to record these transactions on the books of Sheridan Company using a perpetual inventory system. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 3 Accounts Receivable 613400 Sales Revenue 613400 (To record credit sale) (To record cost of merchandise sold) 2.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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
Transcribed Image Text:The following transactions are for Sheridan Company.
On December 3, Sheridan Company sold $613,400 of merchandise to Grouper Co., on account, terms 2/10, n/3O, FOB
destination. Sheridan paid $370 for freight charges. The cost of the merchandise sold was $354,500.
1.
2.
On December 8, Grouper Co. was granted an allowance of $29,400 for merchandise purchased on December 3.
3.
On December 13, Sheridan Company received the balance due from Grouper Co.
(a)
Prepare the journal entries to record these transactions on the books of Sheridan Company using a perpetual inventory system.
(List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent
manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 3
Accounts Receivable
613400
Sales Revenue
613400
(To record credit sale)
(To record cost of merchandise sold)
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Follow-up Question

Transcribed Image Text:(b)
Assume that Sheridan Company received the balance due from Grouper Co. on January 2 of the following year instead of
December 13. Prepare the journal entry to record the receipt of payment on January 2. (Credit account titles are automatically
indented when amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No
Entry" for the account titles and enter O for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
eTextbook and Media
List of Accounts
Save for Later
Attempts: 0 of 4 used
Submit Answer
Solution
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