Question

The following transactions are for Windsor Company. 1. On December 3, Windsor Company sold $491,200 of...

The following transactions are for Windsor Company.

1. On December 3, Windsor Company sold $491,200 of merchandise to Wildhorse Co., on account, terms 3/10, n/30. The cost of the merchandise sold was $322,800.
2. On December 8, Wildhorse Co. was granted an allowance of $24,400 for merchandise purchased on December 3.
3. On December 13, Windsor Company received the balance due from Wildhorse Co.


(a)

Prepare the journal entries to record these transactions on the books of Windsor. Windsor uses a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Date

Account Titles and Explanation

Debit

Credit

1.

Choose a transaction date for number 1

Dec. 3Dec. 8Dec. 13Jan. 2

Enter an account title for journal entry 1 to record credit sale enter a debit amount enter a credit amount
Enter an account title for journal entry 1 to record credit sale enter a debit amount enter a credit amount
(To record sale of merchandise on account)
Choose a transaction date for number 1

Dec. 3Dec. 8Dec. 13Jan. 2

Enter an account title for journal entry 2 to record cost of merchandise sold enter a debit amount enter a credit amount
Enter an account title for journal entry 2 to record cost of merchandise sold enter a debit amount enter a credit amount
(To record cost of merchandise sold on account)

2.

Choose a transaction date for number 2

Dec. 3Dec. 8Dec. 13Jan. 2

Enter an account title for the third journal entry enter a debit amount enter a credit amount
Enter an account title for the third journal entry enter a debit amount enter a credit amount

3.

Choose a transaction date for number 2

Dec. 3Dec. 8Dec. 13Jan. 2

Enter an account title for the journal entry on December 13 enter a debit amount enter a credit amount
Enter an account title for the journal entry on December 13 enter a debit amount enter a credit amount
Enter an account title for the journal entry on December 13 enter a debit amount enter a credit amount


(b)

Assume that Windsor Company received the balance due from Wildhorse 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. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Jan. 2

enter an account title enter a debit amount enter a credit amount
enter an account title enter a debit amount enter a credit amount
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