Brief Exercise 5-04 a-c (Part Level Submission)
Prepare the journal entries to record the following transactions on Novy Companys books using a perpetual inventory system.
A) On March 2, Novy Company sold $900,000 of merchandise on account to Opps Company, terms 2/10, n/30. The cost of the merchandise sold was $590,000.
B) On March 6, Opps Company returned $90,000 of the merchandise purchased on March 2. The cost of the returned merchandise was $62,000.
C) On March 12, Novy Company received the balance due from Opps Company. (I need help with this mainly)
Brief Exercise 5-04 a-c (Part Level Submission) Prepare the journal entries to record the following transactions on Novy Company's books using a perpetual inventory system. (a) Your answer is correct. On March 2, Novy Company sold $900,000 of merchandise on account to Opps Company, terms 2/10, n/30. The cost of the merchandise sold was $590,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Accounts Receivable 900000 Sales Revenue 900000 (To record credit sale) Cost of Goods Sold 590000 Inventory 590000 (To record cost of merchandise sold) Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS SHOW ANSWER LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 1 of 3 used (b) Your answer is correct. On March 6, Opps Company returned $90,000 of the merchandise purchased on March 2. The cost of the returned merchandise was $62,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (b) Your answer is correct. On March 6, Opps Company returned $90,000 of the merchandise purchased on March 2. The cost of the returned merchandise was $62,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Sales Returns and Allowances 90000 Accounts Receivable 90000 (To record merchandise returned) Inventory 62000 Cost of Goods Sold 62000 (To record cost of merchandise returned) Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS SHOW ANSWER LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 1 of 3 used (c) Your answer is partially correct. Try again. On March 12, Novy Company received the balance due from Opps Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Accounts Payable 810000 X Inventory 16200 X x Cash 793800 Click if you would like to Show Work for this question: Open Show Work
