Question

Exercise 5-5 Presented below are transactions related to Bogner Company 1. On December 3, Bogner Company sold $611,600 of merchandise to Maris Co., terms 3/10, 1/30, FOB shipping point The cost of the merchandise sold was $360,900. 2. On December 8, Maris Co. was granted an allowance of $26,900 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.) Account Titles and Explanation Debit Credit No. Date 1. Dec. 3 C C (To record credit sale) CCC CCC To record cost of merchandise sold) 2. Dec. 8 C UUU UU C C C 3. Dec. 13 SHOW LIST OF ACCOUNTS LINK TO TEXT Assume that Bogner Company received the balance due from Maris Co. on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2. (Credit account tities are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 20C C

Answer 1

No. Credit Date Dec 3 Debit $611,600 Account Titles and Explanation Accounts Receivable Sales Revenue (To record credit sale) $611,600 $360,900 $360,900 Cost of Goods Sold Inventory (To record cost of merchandise sold) Dec 8 $26,900 Sales Returns and Allowances Accounts Receivable $26,900 Dec13 Cash Sales Discounts Accounts Receivable $567,159 $17,541 $584,700 Sales Discounts = [($611,600 - $26,900) X 3%] = $17,541 Accounts Receivable = ($611,600 - $26,900) = $584,700 Assume that Bogner Company received the balance due from Maris Co., on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2. Credit Account Titles and Explanation Cash Accounts Receivable Debit $584,700 Jan 2 $584,700