Brief Exercise 5-6

Prepare the journal entries to record the following sales transactions in Blue Spruce Corp.'s books. Blue Spruce uses a perpetual inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 125.)

Jan.2Blue Spruce sold $40,600 of goods to Xtra Inc., terms 2/10, n/45, FOB destination. The cost of the goods sold was $22,736.5The appropriate company paid freight costs of $800.6Xtra returned $5,700 of the merchandise purchased from Blue Spruce on January 2, because it was not needed. The cost of the merchandise returned was $3,192, and it was restored to inventory.11Blue Spruce received the balance due from Xtra.

Jan 2

(to record credit sales)

jan 2

(to record cost of goods)

Jan 5

Jan 6

(To record return of goods)

Jan 6

(To record cost of goods returned)

Jan

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