Question

THP Ch. 5-6 Test 3 - Microsoft Word (Product Activation Failed) 3bCcDd AaBbCcDd AaBbcc A ab Aa Bb Cc AaBbCcDdE AaBbCcDdE AaBbCcDdi AaBbCcDdl AaBbCcDd. Hormal 1 No Spacing Heading 2 Title Subtitle Subtle Emp. Emphasis intense Emp Strong Styles Quote PROBLEM #1: Prepare the journal entries to record the following transactions on Manchester Company's books using a perpetual inventory system. On February 6, Manchester Company sold $75,000 of merchandise to the Lyndon Company, terms 2/10, net /30. The cost of the merchandise sold was $50,000. On February 8, the Lyndon Company returned $10,000 of the merchandise purchased on February 6. The cost of the merchandise returned was $5,000. On February 16 Manchester Company received the balance due from the Lyndon Company. Problem #2: June 4 Barrel Company purchased $7,000 worth of merchandise, terms n/30 from Harden Company. The cost of the merchandise was $4,900. Barrel returned $500 worth of goods to Harden for full credit. The goods had a cost of $350 to Hardon 12

Answer 1

Answer:

Problem #1
Journal Entries in the books of Manchester Company
Date	Particulars	L/F	Debit	Credit
Feb	6	Accounts Receivable - Lyndon Co.………Dr		$ 75,000.00
		To Sales			$ 75,000.00
		(being the sales of goods under credit term 2/10,net/30)
	6	Cost of Sales………….Dr		$ 50,000.00
		To Inventory			$ 50,000.00
		(Being cost charged to cost of sales account)
	8	Sales Return Account………….Dr		$ 10,000.00
		To Accounts Receivable - Lyndon Co			$ 10,000.00
		(Being the return on goods which is sold on 6th Feb)
	8	Inventory Account………….Dr		$    5,000.00
		To Cost of Sales			$    5,000.00
		(Being material received towards sales return)
	16	Cash Account…………………Dr		$ 63,700.00
		Trade Discount ………..Dr		$    1,300.00
		To Accounts Receivable - Lyndon Co			$ 65,000.00
		(Being the balance received from Lyndon after deducting return and discount)
Problem #2
Journal entry in th books of Barrel Company
June	4	Inventory Account …………..Dr		$    7,000.00
		To Harden Company			$    7,000.00
		(Being the purchase from Harden with the term of n/30)
	12	Harden Company Account…………..Dr		$        500.00
		To Inventory			$        500.00
		(being the return of goods to Harden Company)
Journal entry in th books of Harden Company
June	4	Accounts Receivable -Barrel Company……..Dr		$    7,000.00
		To Sales			$    7,000.00
		(being the sales of goods under credit term n/30)
	4	Cost of Sales………….Dr		$    4,900.00
		To Inventory			$    4,900.00
		(Being cost charged to cost of sales account)
	12	Sales Return Account………….Dr		$        500.00
		Accounts Receivable -Barrel Company			$        500.00
		(Being the return on goods which is sold on 4th June)
	12	Inventory Account………….Dr		$        350.00
		To Cost of Sales			$        350.00
		(Being material received towards sales return)