Brief Exercise 5-04

Prepare the journal entries to record the following transactions on Sunland Companys books using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. 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 March 2, Sunland Company sold $885,600 of merchandise to Splish Brothers Company on account, terms 2/10, n/30. The cost of the merchandise sold was $519,500.

(b) On March 6, Splish Brothers Company returned $110,200 of the merchandise purchased on March 2. The cost of the merchandise returned was $63,000.

(c) On March 12, Sunland Company received the balance due from Splish Brothers Company.

Account Titles and Explanation Debit No. Date Credit (a) (To record sale of merchandise) (b) (To record return of merchandise) (c) March 12 Click if you would like to Show Work for this question: Open Show Work 11 1