Question

Crane Company is a furniture retailer and uses the perpetual inventory system. On January 14, 2022, Crane purchased merchandise inventory at a cost of $44,000. Credit terms were 2/10, n/30. The inventory was sold on account for $74,000 on January 21, 2022. Credit terms were 1/10, n/30. The accounts payable was settled on January 23, 2022, and the accounts receivables were settled on January 30, 2022.

Prepare journal entries to record each of these transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 14Jan. 21Jan. 23Jan. 30	enter an account title for the journal entry on january 14	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on january 14	enter a debit amount	enter a credit amount
Jan. 14Jan. 21Jan. 23Jan. 30	enter an account title to record credit sale on january 21	enter a debit amount	enter a credit amount
	enter an account title to record credit sale on january 21	enter a debit amount	enter a credit amount
	(To record credit sale)
Jan. 14Jan. 21Jan. 23Jan. 30	enter an account title to record cost of good sold on january 21	enter a debit amount	enter a credit amount
	enter an account title to record cost of good sold on january 21	enter a debit amount	enter a credit amount
	(To record cost of good sold)
Jan. 14Jan. 21Jan. 23Jan. 30	enter an account title for the journal entry on january 23	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on january 23	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on january 23	enter a debit amount	enter a credit amount
Jan. 14Jan. 21Jan. 23Jan. 30	enter an account title for the journal entry on january 30	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on january 30	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on january 30	enter a debit amount	enter a credit amount

Answer 1

Journal Entry- Crane Company
Date	Account Tittle	Debit	Credit
14-Jan	Merchandised Inventory	$44,000.00
	Account Payable		$44,000.00
	To Record Purchase inventory
21-Jan	Account Receivable	$74,000.00
	Sales		$74,000.00
	TO Record Sales on Account
21-Jan	Cost of Goods Sold	$44,000.00
	Merchandised Inventory		$44,000.00
	TO Record Cost of Goods Sold
23-Jan	Account Payable	$44,000.00
	Cash (bf)	$43,120.00
	Merchandised Inventory (44000X2%)		$880.00
	To Record Settled Account Payable
30-Jan	Cash (bf)	$73,260.00
	Sales Discount (74000*1%)	$740.00
	Account receivable		$74,000.00
	To Record Settled Account receivable

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