Question

June 4 Sandhill Company purchased $9,200 worth of merchandise, terms n/30 from Hayes Company. The cost of the merchandise was $7,000.

12 Sandhill returned $510 worth of goods to Hayes for full credit. The goods had a cost of $350 to Hayes.

12 Sandhill paid the account in full. Assume use of the perpetual inventory system for both companies.

Prepare the journal entries to record these transactions in Sandhill’s books. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.

Record entries in the order displayed in the problem statement.) Date Account Titles and Explanation Debit Credit enter an account title for the journal entry on june 4

enter a debit amount enter a credit amount enter an account title for the journal entry on june 4

enter a debit amount enter a credit amount enter an account title for the journal entry on june 12 enter a debit amount

enter a credit amount enter an account title for the journal entry on june 12 enter a debit amount enter a credit amount (To record return of goods)

enter an account title for the journal entry on june 12 enter a debit amount enter a credit amount enter an account title for the journal entry on june 12

enter a debit amount enter a credit amount (To record payment)

Prepare the journal entries to record these transactions in Hayes’ books. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date Account Titles and Explanation Debit Credit enter an account title to record credit sale on june 4 enter a debit amount enter a credit amount enter an account title to record credit sale on june 4 enter a debit amount enter a credit amount (To record credit sale)

enter an account title to record Cost of Goods Sold on june 4 enter a debit amount enter a credit amount enter an account title to record Cost of Goods Sold on june 4 enter a debit amount enter a credit amount (To record cost of goods sold) enter an account title to record credit granted for returned goods on june 12

enter a debit amount enter a credit amount enter an account title to record credit granted for returned goods on june 12 enter a debit amount enter a credit amount (To record credit granted for returned goods)

enter an account title to record cost of goods returned on june 12 enter a debit amount enter a credit amount enter an account title to record cost of goods returned on june 12 enter a debit amount enter a credit amount (To record cost of goods returned)

enter an account title for the journal entry on june 12 enter a debit amount enter a credit amount enter an account title for the journal entry on june 12 enter a debit amount enter a credit amount (To record cash received on account)

Answer 1

Answer:-

Date Debit ($) Credit ($) 9,200 June.04 9,200 General Journal In the Book of Sandhill Merchandise inventory Account payable (to record credit purchase) Account payable Merchandise inventory (to record purchase return) Account payable Cash (to record payment on account) June. 12 510 June. 12 8690 Date Debit ($) Credit ($) 9,200 June.04 9,200 7,000 June. 12 7000 General Journal In the Book of Hayes Company Account receivable Sales revenue (to record credit sale) Cost of goods sold Merchandise inventory (to record cost of goods sold) Sales return and allowance Account receivable (to record credit granted for returned goods) Merchandise inventory Cost of goods sold (to record cost of goods returned) Cash Account receivable (to record cash received on account) 510 June. 12 510 350 June. 12 350 8,690 June.12 8690