The following transactions are for Wildhorse Company.1. On December 3, Wildhorse Company sold $584,300 of merchandise to Swifty Co., on account, terms 2/10, n/30, FOB destination. Wildhorse paid $370 for freight charges. The cost of the merchandise sold was $359,300.2. On December 8, Swifty Co. was granted an allowance of $21,300 for merchandise purchased on December 3.3. On December 13, Wildhorse Company received the balance due from Swifty Co.1. Prepare the journal entries to record these transactions on the books of Wildhorse Company using a perpetual inventory system2. Assume that Wildhorse Company received the balance due from Swifty 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. Prepare the journal entries to record these transactions on the books of Wildhorse Company using a perpetual inventorysystem. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do notindent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)DateAccount Titles and ExplanationDebitCredit(To record credit sale)(To record cost of merchandise sold)(To record freight charges)>>>> Assume that Wildhorse Company received the balance due from Swifty Co. on January 2 of the following year instead ofDecember 13. Prepare the journal entry to record the receipt of payment on January 2. (Credit account titles are automaticallyindented when amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "NoEntry" for the account titles and enter O for the amounts.)DateAccount Titles and ExplanationDebitCredit

The term 2/10, net 30 means, the customer would receive a 2 percent discount if he pays within 10…

Answered: The following transactions are for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

The following transactions are for Wildhorse Company.

1.		On December 3, Wildhorse Company sold $584,300 of merchandise to Swifty Co., on account, terms 2/10, n/30, FOB destination. Wildhorse paid $370 for freight charges. The cost of the merchandise sold was $359,300.
2.		On December 8, Swifty Co. was granted an allowance of $21,300 for merchandise purchased on December 3.
3.		On December 13, Wildhorse Company received the balance due from Swifty Co.

1. Prepare the journal entries to record these transactions on the books of Wildhorse Company using a perpetual inventory system

2. Assume that Wildhorse Company received the balance due from Swifty 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.

Prepare the journal entries to record these transactions on the books of Wildhorse 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
(To record credit sale)
(To record cost of merchandise sold)
(To record freight charges)
>
>
>
>

Assume that Wildhorse Company received the balance due from Swifty 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

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions