Question

View Policies Current Attempt in Progress Prepare journal entries to record the following sales transactions in Wildhorse Company's books. Wildhorse uses a perpetual inventory system Jan. 2 4 Wildhorse sold $14,000 of merchandise to Xiaoyan Company, terms 1/30, FOB shipping point. The cost of the merchandise sold was $5.530 The correct company paid freight costs of $245. Xiaoyan returned $1.400 of the merchandise purchased on January 2 because it was not needed. The cost of the merchandise returned was 5550, and it was restored to inventory. Wildhorse received the balance due from Xiaoyan. Feb. 1 (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and entero for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record sales on account.) (To record cost of goods sold.)

Answer 1

Solution:

Journal Entries - Wildhorse Co
Date	Particulars	Debit	Credit
2-Jan	Accounts receivables Dr	$14,000.00
	To Sales revenue		$14,000.00
	(To record sales revenue)
2-Jan	Cost of goods sold Dr	$5,530.00
	To Merchandise inventory		$5,530.00
	(To record cost of goods sold)
4-Jan	Freight- out Dr	$245.00
	To Cash		$245.00
	(To record freight payment)
6-Jan	Sales return and allowances Dr	$1,400.00
	To Accounts receivables		$1,400.00
	(To record sales return)
6-Jan	Merchandise inventory Dr	$550.00
	To Cost of goods sold		$550.00
	(Being goods returned taken into inventory)
1-Feb	Cash Dr	$12,600.00
	To Accounts receivables		$12,600.00
	(To record collection from customer)