Question
Crane Corporation uses the perpetual inventory system and began business on April 1. During the month Crane made inventory purchases of $83,100 on terms of
Crane Corporation uses the perpetual inventory system and began business on April 1. During the month Crane made inventory purchases of $83,100 on terms of 3//10,n//30. Crane returned $3,400 worth of goods during the month. Crane made all payments in time to take advantage of the offered cash discounts during the month. Crane sold inventory on account with a value of $71,100 and a markup of 30% on the cost. These were the only inventory transactions during the month. Leo uses the gross method in accounting for cash discounts. Prepare the journal entries related to:
sale of goods
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