Exercise 3 Oct 1 Sold merchandise costing 55,000 on account to Pink Company for $7,500,terms 2/10, 130, FOB Destination 2 Rainbow Company paid $300 of shipping charges to Worldwide Shipping Company for the merchandise sold to Pink Company on October 1. 5 Pink Company refumed $800 of merchandise (cost $400) for credit 9 Sold merchandise costing $3,000 on account to Green Company for $6,000, terms 2/10, 1/30, FOB Shipping Point Green Company paid $200 of shipping charges to Worldwide Shipping Company 11 Received the amount due from Pink Company 12 In order to match a competitor's lower price, agreed to reduce the sales price of the merchandise sold to Green Company on October 9 by $800. 19 Received the amount due from Green Company. Instruetions (a) Prepare the general journal entries to record the October sales transactions in tl attached journal (b) Post your journal entries to the accounts in the next sheet. Schedule of Accounts Receivable: Does the total of your Pink and Green account balances match the balance of the general ledger Accounts Receivable account (c) What is net sales! Sales less: Sales Returns and Allowances less: Sales Discounts equals: Net Sales (a) Date Account Titles PR Debit Credit Exercise #3 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 Exercise 3 Oct 1 Sold merchandise costing 55,000 on account to Pink Company for $7,500,terms 2/10, 130, FOB Destination 2 Rainbow Company paid $300 of shipping charges to Worldwide Shipping Company for the merchandise sold to Pink Company on October 1. 5 Pink Company refumed $800 of merchandise (cost $400) for credit 9 Sold merchandise costing $3,000 on account to Green Company for $6,000, terms 2/10, 1/30, FOB Shipping Point Green Company paid $200 of shipping charges to Worldwide Shipping Company 11 Received the amount due from Pink Company 12 In order to match a competitor's lower price, agreed to reduce the sales price of the merchandise sold to Green Company on October 9 by $800. 19 Received the amount due from Green Company. Instruetions (a) Prepare the general journal entries to record the October sales transactions in tl attached journal (b) Post your journal entries to the accounts in the next sheet. Schedule of Accounts Receivable: Does the total of your Pink and Green account balances match the balance of the general ledger Accounts Receivable account (c) What is net sales! Sales less: Sales Returns and Allowances less: Sales Discounts equals: Net Sales (a) Date Account Titles PR Debit Credit Exercise #3 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
