Question

Brief Exercise 8-02 Record the following transactions on the books of Sheridan Co. (Omit cost of goods sold entries.) (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 July 1, Sheridan Co. sold merchandise on account to Stacey Inc. for $21,540, terms 4/10, n/30. (b) On July 8, Stacey Inc. returned merchandise worth $2,540 to Sheridan Co. (c) On July 11, Stacey Inc. paid for the merchandise.

Answer 1

Date	Journal Entry	Debit	Credit
Jul-01	Stacey Inc. A/c Dr	21540
	To Sales		21540
	Being Goods sold to stacey inc
Jul-08	Sales Returns A/c Dr	2540
	To Stacey Inc A/c		2540
	(Being returned the merchandise)
Jul-11	Cash A/c Dr	18240
	Discount A/c Dr	760
	To Stacey Inc A/c		19000
	(Being amount settled with in 10 days and discount given @4%)