Young Company sold merchandise to Sheffield Company on account for $183,960 with credit terms of?/10, n/30. The cost of the merchandise sold was $110,376. During the discount period, Sheffield Company returned $7,560 of merchandise and paid its account in full (minus the discount) by remitting $172,872 in cash. Both companies use a perpetual inventory system. Prepare the journal entries that Young Company made to record: (1) the sale of merchandise. (2) the return of merchandise. (3) the collection on account.
Young Company sold merchandise to Sheffield Company on account for $183,960 with credit terms of?/10, n/30. The cost of the merchandise sold was $110,376. During the discount period, Sheffield Company returned $7,560 of merchandise and paid its account in full (minus the discount) by remitting $172,872 in cash. Both companies use a perpetual inventory system. Prepare the journal entries that Young Company made to record: (1) the sale of merchandise. (2) the return of merchandise. (3) the collection on account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Young Company sold merchandise to Sheffield Company on account for $183,960 with
credit terms of ?/10, n/30. The cost of the merchandise sold was $110,376. During the
discount period, Sheffield Company returned $7,560 of merchandise and paid its account
in full (minus the discount) by remitting $172,872 in cash. Both companies use a perpetual
inventory system. Prepare the journal entries that Young Company made to record:
(1)
the sale of merchandise.
(2)
the return of merchandise.
(3)
the collection on account.
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