Question

Prepare the journal entries to record the following transactions on Crane Company's books using a perpetual inventory system. Of no entry is required, select 'N Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) 

(a) On March 2, Larkspur Company sold $901,300 of merchandise to Crane Company on account, terms 3/10, 1/30. The cost of the merchandise sold was $559,000 

(b) On March 6, Crane Company returned $117,700 of the merchandise purchased on March 2. The cost of the merchandise returned was $66,800. 

(c) On March 12, Larkspur Company received the balance due from Crane Company. 

Answer 1