Question

On October 5, Sheridan Company buys merchandise on account from Skysong Company. The selling price of the goods is $5,680, and the cost to Skysong Company is $3,500. On October 8, Sheridan returns defective goods with a selling price of $690 and a scrap value of $250. Record the transactions on the books of Skysong Company, assuming a perpetual approach. (If no entry is required, select "No Entry" for the account titles and enter o 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.) Date Account Titles and Explanation Debit Credit Oct. 5 - Inventory 5680 Accounts Payable 5680 (To record credit sales) (To record cost of goods sold on account) Oct. 8 Accounts Payable 600 m Inventory 690 (To record credit granted for receipt of returned goods) (To record scrap value of goods returned)

Answer 1

Date	Account	Debit	Credit
Oct 5	Accounts Receivable	5680
	Sales revenue		5680
	Cost of Goods Sold	3,500
	Inventory		3,500
Oct 8	Sales returns and allowances	690
	Accounts Receivable		690
	Inventory	250
	Cost of Goods Sold		250