Brief Exercise 5-05

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, Splish Brothers Company sold $885,600 of merchandise to Sunland Company on account, terms 2/10, n/30. The cost of the merchandise sold was $519,500.

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

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

Account Titles and Explanation Date Debit Credit No. (a) (b Open Show Work Click if you would like to Show Work for this question: 111