Question

Blossom Company purchased merchandise on account from Office Suppliers for $65,000, with terms of 1/10, n/30. During the discount period, Blossom returned some merchandise and paid $58,311 as payment in full. Blossom uses a perpetual inventory system.

Prepare the journal entries that Blossom Company made to record the:

(1)		purchase of merchandise.
(2)		return of merchandise.
(3)		payment on account.

(Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
(1)	enter an account title to record the purchase of merchandise	enter a debit amount	enter a credit amount
	enter an account title to record the purchase of merchandise	enter a debit amount	enter a credit amount
(2)	enter an account title to record the return of merchandise	enter a debit amount	enter a credit amount
	enter an account title to record the return of merchandise	enter a debit amount	enter a credit amount
(3)	enter an account title to record the payment on account	enter a debit amount	enter a credit amount
	enter an account title to record the payment on account	enter a debit amount	enter a credit amount
	enter an account title to record the payment on account	enter a debit amount	enter a credit amount

  

  

Splish Company sold merchandise to Moore Company on account for $85,000 with credit terms of ?/10, n/30. The cost of the merchandise sold was $62,000. During the discount period, Moore Company returned $4,900 of merchandise and paid its account in full (minus the discount) by remitting $78,498 in cash. Both companies use a perpetual inventory system.

Prepare the journal entries that Splish Company made to record the:

(1)		sale of merchandise.
(2)		return of merchandise.
(3)		collection on account.

(Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
(1)	enter an account title to record credit sale	enter a debit amount	enter a credit amount
	enter an account title to record credit sale	enter a debit amount	enter a credit amount
	(To record credit sale)
	enter an account title to record cost of good sold	enter a debit amount	enter a credit amount
	enter an account title to record cost of good sold	enter a debit amount	enter a credit amount
	(To record cost of good sold)
(2)	enter an account title to record credit granted for returned goods	enter a debit amount	enter a credit amount
	enter an account title to record credit granted for returned goods	enter a debit amount	enter a credit amount
	(To record credit granted for returned goods)
	enter an account title to record cost of good returned	enter a debit amount	enter a credit amount
	enter an account title to record cost of good returned	enter a debit amount	enter a credit amount
	(To record cost of good returned)
(3)	enter an account title to record the collection on account	enter a debit amount	enter a credit amount
	enter an account title to record the collection on account	enter a debit amount	enter a credit amount
	enter an account title to record the collection on account	enter a debit amount	enter a credit amount

  

Answer 1