Question

Tue, Feb 25, 2020, 12:22:28 PMIAmerica/Los Angeles -08:00) Question 2 View Policies Current Attempt in Progress Prepare the journal entries to record the following transactions on Blossom Company's books using a perpetual inventory system. (If no entry is required, select "No Entry" indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (a) On March 2, Blossom Company sold $889,200 of merchandise to Sunland Company, terms 2/10, n/30. The cost of the merchandise sold was $573,500. (b) On March 6, Sunland Company returned $111,100 of the merchandise purchased on March 2. The cost of the merchandise returned was $67,400. (c) On March 12, Blossom Company received the balance due from Sunland Company. No. Date Account Titles and Explanation Debit Credit (a) Accounts Receivable 573500 Sales Revenue 573500 (To record sale of merchandise) (To record return of merchandise) (c) March 12

Answer 1

Journal entry

No	Date	Account titles and explanation	Debit	Credit
a)	Mar 2	Account receivable	889200
		Sales revenue		889200
		(To record sales)
		Cost of goods sold	573500
		Merchandise inventory		573500
		(To record cost of merchandise sold)
b)	Mar 6	Sales return and allowance	111100
		Account receivable		111100
		(To record sales return)
	Mar 6	Merchandise inventory	67400
		Cost of goods sold		67400
c)	Mar 12	Cash (778100*98%)	762538
		Sales discount	15562
		Account receivable (889200-111100)		778100