Question

Journal Entries for Sale, Return, and Remittance-Perpetual System On October 14, the Patrick Company sold merchandise with an invoice price of $1,600 (51,350 cost with terms of 2/10, 1/30, to the Baxter Company. On October 18 $300 of the merchandise (S210 cost was returned because it was the wrong size. On October 24, the Patrick Company received a check for the amount due from the Baxter Company Required Prepare the journal entries for the Patrick Company using the perpetual inventory system. General Journal Date Description Credit Oct 14 Sold merchandise to Baxter Company terms 2/10 30 Cost of merchandise sold to Baxter Company Merchandise returned by Baxter Company Cost of merchandise returned by Barter Company 24 Remittance received from Baxter Company Type here to search

Answer 1

Solution: Journal Entries in the books of Patrick Company

General Journal
Date	Description	Debit	Credit
Oct.14	Account Receivable	$        1,600
	Sales-Merchandise		$       1,600
	Sold merchandise to Baxter Company terms 2/10, n/30
Oct.20	Cost of Merchandise/Goods Sold	$        1,350
	Inventory		$       1,350
	Cost of Merchandise Sold to Baxter Company.
Oct.18	Sales returns and allowance	$            300
	Account Receivable		$           300
	Merchandise returned by Baxter Company.
Oct.18	Inventory	$            210
	Cost of Merchandise/Goods Sold		$           210
	Cost of Merchandise returned by Baxter Company.
Oct.24	Cash	$        1,274
	Sales Discount($ 1300*2%)	$              26
	Account Receivable($1600-$300)		$       1,300
	Remittance received from Baxter Company.