Question

The following transactions are for Metlock Company 1. On December 3, Metlock Company sold $536,100 of merchandise to Ivanhoe Co., on account, terms 3/10,n/30. The cost of the merchandise sold was $317.400. 2. On December 8, Ivanhoe Co. was granted an allowance of $24,800 for merchandise purchased on December 3. 3. On December 13, Metlack Company received the balance due from Ivanhoe Co. Prepare the journal entries to record these transactions on the books of Metlock. Metlock uses a perpetual inventory system. (If no entry is required, select "No Entry"for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit (To record sale of merchandise on account) (To record cost of merchandise sold on account) 2.

Answer 1

Solution

No	Date	General Journal	Debit	Credit
1	Dec-03	Accounts receivable	$ 536,100.00
		Sales revenue		$ 536,100.00
		(to record sale of merchandise on account)
	Dec-03	Cost of goods sold	$ 317,400.00
		Merchandise inventory		$ 317,400.00
		(To record cost of goods sold on account)
2	Dec-08	Purchase allowances	$    24,800.00
		Accounts receivable		$    24,800.00
		(To record allowances provided)
3	Dec-13	Cash	$ 495,961.00*
		Purchase discount	$    15,339.00
		Accounts receivable		$ 511,300.00
		(to record collection from receivables)

*(536100-24800) x 97%

Please use account title from the list provided to you of the above titles do not match.