Question

Prepare the journal entries to record the following transactions on Crane Company’s books using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 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, Crane Company sold $898,900 of merchandise to Larkspur Company on account, terms 2/10, n/30. The cost of the merchandise sold was $519,500.
(b)		On March 6, Larkspur Company returned $100,200 of the merchandise purchased on March 2. The cost of the merchandise returned was $61,900.
(c)		On March 12, Crane Company received the balance due from Larkspur Company.

Date	Account Titles and Explanation	Debit	Credit
(a)	choose a transaction date                                                          March 2March 6March 12	enter an account title to record sale of merchandise	enter a debit amount	enter a credit amount
		enter an account title to record sale of merchandise	enter a debit amount	enter a credit amount
		(To record sale of merchandise)
	choose a transaction date                                                          March 2March 6March 12	enter an account title	enter a debit amount	enter a credit amount
		enter an account title	enter a debit amount	enter a credit amount
(b)	choose a transaction date                                                          March 2March 6March 12	enter an account title to record return of merchandise	enter a debit amount	enter a credit amount
		enter an account title to record return of merchandise	enter a debit amount	enter a credit amount
		(To record return of merchandise)
	choose a transaction date                                                          March 2March 6March 12	enter an account title	enter a debit amount	enter a credit amount
		enter an account title	enter a debit amount	enter a credit amount
(c)	March 12	enter an account title for the journal entry on March 12	enter a debit amount for the journal entry on March 12	enter a credit amount for the journal entry on March 12
		enter an account title for the journal entry on March 12	enter a debit amount for the journal entry on March 12	enter a credit amount for the journal entry on March 12
		enter an account title for the journal entry on March 12	enter a debit amount for the journal entry on March 12	enter a credit amount for the journal entry on March 12

Answer 1

No. Credit Debit $ 898,900 a) Date Account titles and Explanation Mar-02 Account Receivable Sales revenue (To record sales on account) $ 898,900 $ 519,500 Mar-02 Cost of goods sold Inventory (To record the cost of goods sold) $ 519,500 b) $ 100,200 Mar-06 Sales returns and allowances Account receivable (To record the sales return) $ 100,200 $ 61,900 Mar-06 Inventory Cost of goods sold (To record the cost of cost of goods returned) $ 61,900 c) $ 782,726 $ 15,974 Mar-12 Cash ($798,700 - $15,974) Sales discounts ($798,700*2%) Accounts receivable ($898,900-$100,200) (To record the receipt of accounts receivable) $ 798,700