Question

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Exercise 5-05 a-b Presented below are transactions related to Bogner Company 1. On December 3, Bogner Company sold $570,000 of merchandise on account to Maris Co., terms 2/10, n/30, FOB shipping point. The cost of the merchandise sold was $350,000. 2. On December 8, Maris Co. was granted an allowance of $20,000 for merchandise purchased on December 3. 3. On December 13, Bogner Company received the balance due from Maris Co. Prepare the journal entries to record these transactions on the books of Bogner Company using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) No. Date Account Titles and Explanation Debit Credit (To record credit sale) (To record cost of merchandise sold)

Answer 1

Journal entry

No	Date	General Journal	Debit	Credit
1	Dec 3	Account receivable	570000
		Sales revenue		570000
		(To record credit sales)
		cost of goods sold	350000
		Merchandise inventory		350000
		(To record cost of goods sold)
2	Dec 8	Sales return and allowance	20000
		Account receivable		20000
3	Dec 13	Cash (550000*98%)	539000
		Sales discount	11000
		Account receivable		550000

b) Journal entry

no	Date	account and explanation	Debit	Credit
3	Jan 2	Cash	550000
		Account receivable		550000