Question

On February 6, Crane Company sold $109,000 of merchandise to the Lyman Company, terms 2/10 net/30. The cost of the merchandise sold was $83,000. On February 8, the Lyman Company returned $13,000 of the merchandise purchased on February 6. The cost of the merchandise returned was $9,000. On February 16 Crane Company received the balance due from the Lyman Company Prepare the journal entries to record the above transactions on Crane Company's books using a perpetual inventory system is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (Credit account titles are automatically indented when the ar Date Account Titles and Explanation Debit Credit (To record credit sale) (To record cost of good sold) (To record goods returned) (To record cost of good returned) Click if you would like to Show Work for this question Open Show Work

Answer 1

Answer: Credit Date Feb 6 Debit 109,000 109,000 Feb 6 83,000 83,000 Feb 8 13,000 Accounts Titles & Explanation Accounts Receivable Sales (to record credit sales) Cost of Goods Sold Merchandise Inventory (To record cost of goods sold) Sales Returns and Allowance Accounts Receivable (To record goods returned) Merchandise Inventory Cost of Goods Sold (To record cost of goods returned) Cash Sales Discount ($96,000 * 2%) Accounts Receivable ($109,000 - $13,000) (To record balance received from Lyman Company) 13,000 Feb 8 9,000 9,000 Feb 16 94,080 1,920 96,000