Question

Question 2 View Policies Current Attempt in Progress Sheridan Company buys merchandise on account from Skysong Company. The selling price of the goods is $915 and the cost of the goods sold is $635. Both companies use perpetual inventory systems. Journalize the transactions on the books of both companies. (If no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually Account Titles and Explanation Debit Credit Sheridan Skysong (To record sale of merchandise)

Answer 1

Solution to the FIRST QUESTION

Journal entry in the books of Sheridan Company

Accounts Tittles and Explanations	Debit ($)	Credit ($)
Merchandise Inventory A/c	915
To Accounts Payable A/c		915
[Entry to record the Purchase of Merchandise inventory on account]

Journal entry in the books of Skysong Company

Accounts Tittles and Explanations	Debit ($)	Credit ($)
Accounts Receivables A/c	915
To Sales Revenue A/c		915
[Entry to record the sales revenue]
Cost of goods sold A/c	635
To Merchandise Inventory A/c		635
[Entry to record the cost of goods sold]

PLEASE BE NOTED (More than 1 Question)