Question

Brief Exercise 5-4 Prepare the journal entries to record the following transactions on Whispering Winds Corp.'s books using a perpetual inventory system. On March 2, Whispering Winds Corp. sold $815,000 of merchandise on account to Martinez Company, terms 4/10, 1/30. The cost of the merchandise sold was $603,000. (Credl manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Accounts Receivable 815000 Sales Commissions Expense 815000 (To record credit sale) Cost of Goods Sold

Answer 1

Answer
Whispering Company's books
Date	Title	Debit	Credit
Mar-02	Accounts receivable	$     815,000
	Sales revenue		$     815,000
	(To record sale on credit)
	Cost of goods sold	$     603,000
	Merchandise inventory		$     603,000
	(To record cost of goods sold)
Mar-06	Sales returns and allowances	$       81,500
	Accounts receivable		$       81,500
	(To record return of sales)
	Merchandise inventory	$       60,300
	Cost of goods sold		$       60,300
	(To record cost of goods sold of return)
	Cash ($815000-81500)*96%)	$     704,160
	Sales discounts ($815000-81500)*4%)	$       29,340
	Accounts receivable		$     733,500
	(To record cash receipt after discount)