D E B Exercise #3 2 Oct 1 Sold merchandise costing $5,000 on account to Pink Company for $7,500 terms 2/10, n 30, FOB Destination 1 2 Rainbow Company paid $300 of shipping charges to Worldwide Shipping Company for the 5 merchandise sold to Pink Company on October 1. 5 5 Pink Company returned $800 of merchandise (cost $400) for credit. 7 9 Sold merchandise costing $3,000 on account to Green Company for $6,000, terms 3 2/10, 1/30, FOB Shipping Point Green Company paid $200 of shipping charges to Worldwide Shipping Company 0 11 Received the amount due from Pink Company 11 12 In order to match a competitor's lower price, agreed to reduce the sales price of the 12 merchandise sold to Green Company on October 9 by $800. 13 19 Received the amount due from Green Company 14 Instructions 15. (a) Prepare the general journal entries to record the October sales transactions in the 16 attached joumal 17. (b) Post your journal entries to the T-accounts in the next sheet 18 Schedule of Accounts Receivable: Does the total of your Pink and Green account 19 balances match the balance of the general ledger Accounts Receivable account? 20 21 (c) What is net sales? 22 Sales 23 less: Sales Returns and Allowances 24 less: Sales Discounts 25 equals: Net Sales 26 27 (a) 28 29 Date Account Titles Debit 30 Credit 31 PR Exercise #3 (b) GENERAL LEDGER OF ACCOUNTS MERCHANDISE INVENTORY CASH ACCOUNTS RECEIVABLE SALE RETURNS AND ALLOWANCES SALES SALES DISCOUNTS COGS EXPENSE FREIGHT-OUT ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER PINK COMPANY GREEN COMPANY