Question

Exercise 5-5 (Part Level Submission)

Presented below are transactions related to Sunland Company.

1.		On December 3, Sunland Company sold $650,000 of merchandise on account to Oriole Co., terms 2/10, n/30, FOB shipping point. The cost of the merchandise sold was $353,600.
2.		On December 8, Oriole Co. was granted an allowance of $29,500 for merchandise purchased on December 3.
3.		On December 13, Sunland Company received the balance due from Oriole Co. Exercise 5-5 (Part Level Submission) Presented below are transactions related to Sunland Company. 1. On December 3, Sunland Company sold $650,000 of merchandise on account to Oriole Co., terms 2/10, n/30, FOB shipping point. The cost of the merchandise sold was $353,600. 2. On December 8, Oriole Co. was granted an allowance of $29,500 for merchandise purchased on December 3. 3. On December 13, Sunland Company received the balance due from Oriole Co. (a) Prepare the journal entries to record these transactions on the books of Sunland 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 1. (To record credit sale) (To record cost of merchandise sold) 2. 3. Dec. 13 Click if you would like to Show Work for this question: Open Show Work The second part is not from the exact question since I could not open that part without completing part A. So this is from an online source. Try to tell me how to do this one as well. PLEASE< EXPLAIN AS WELL SO I UNDERSTAND!

Answer 1

1) Journal entry

date	account and explanation	Debit	Credit
Dec 3	Account receivable	650000
	Sales revenue		650000
	(To record Sales)
	Cost of goods sold	353600
	Merchandise inventory		353600
	(To record cost of goods sold)
Dec 8	Sales return and allowance	29500
	Account receivable		29500
	(To record sales allowance)
Dec 13	Cash (620500*98%)	608090
	Sales discount	12410
	Account receivable (650000-29500)		620500

B) Journal entry

Date	account and explanation	Debit	Credit
Jan 2	Cash	620500
	Account receivable (650000-29500)		620500