Question

Prepare the journal entries to record the following transactions on Concord Corporation’s books using a perpetual inventory system.

On March 2, Concord Corporation sold $821,000 of merchandise on account to Sarasota Company, terms 2/10, n/30. The cost of the merchandise sold was $613,000.

On March 6, Sarasota Company returned $82,100 of the merchandise purchased on March 2. The cost of the returned merchandise was $61,300

On March 12, Concord Corporation received the balance due from Sarasota Company.

Answer 1

Date	Account Titles and Explanation	Debit	Credit
March 2	Accounts Receivable	821,000
	Sales Revenue		821,000
	Cost of Goods Sold	613,000
	Inventory		613,000
March 6	Sales Return and Allowance	82,100
	Accounts Receivable		82,100
	Inventory	61,300
	Cost of Goods Sold		61,300
March 12	Cash	724,122
	Sales Discounts (738,900 x 2%)	14,778
	Accounts Receivable		738,900