Question

Current Attempt in Progress 

This information relates to Skysong Co.

 1. On April 5, purchased merchandise from Sheridan Company for $27,600, terms 3/10,n/30.

 2. On April 6, paid freight costs of $770 on merchandise purchased from Sheridan.

 3. On April 7, purchased equipment on account for $34,300.

 4. On April 8, returned $5,300 of April 5 merchandise to Sheridan Company.

 5. On April 15, paid the amount due to Sheridan Company in full. 

(a) Prepare the journal entries to record the transactions listed above on Skysong Co's books. Skysong Co. uses a perpetual inventory system. 

(b) Assume that Skysong Co. paid the balance due to Sheridan Company on May 4 instead of April 15. Prepare the journal entry to record this payment.

Answer 1

ANSWER

a) Journal entry

Date	General journal	Debit	Credit
Apr 5	Inventory	27600
	Account payable		27600
Apr 6	Inventory	770
	Cash		770
Apr 7	Equipment	34300
	Account payable		34300
Apr 8	Account payable	5300
	Inventory		5300
Apr 15	Account payable	22300
	Cash		21631
	Inventory		669

B) Journal entry

Date	General journal	debit	Credit
May 4	Account payable	22300
	Cash		22300