Question

he following transactions are for Ivanhoe Company. 1) On December 3 Ivanhoe Company sold $535,000 of merchandise to Thomson Co., terms 1/10, n/30. The cost of the merchandise sold was $326,000. (2) On December 8 Thomson Co. was granted an allowance of $18,000 for merchandise purchased on December 3, (3) On December 13 lvanhoe Company received the balance due from Thomson Co. (a) Prepare the journal entries to record these transactions on the books of Ivanhoe Company. Ivanhoe uses a perpetual inventory system. (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 (To record credt sale) (To record cost of good sold) G

Answer 1

Page. Dec 3 Thomson Co Alc 536000 Sales Alc 535000 cost of goacs sold 326000 Tnventor y $3a6000 Dec Allowanes to thonson Thomson Co ETO Rewrd allswanes) $18o00 Dec 13 Cash Bank Distount allowol Thom son co $511830 $6140 $517000 CTo Record Reaipl of Balanu) 535000 16000) x / Disuount $510