Exercise 5-11 An inexperienced accountant for Sheridan Company made the following errors in recording merchandising transactions. A $370 refund to a customer for faulty merchandise was debited to Sales Revenue $370 and credited to Cash $370 1. A $281 credit purchase of supplies was debited to Inventory $2881 and credited to Cash $281. 2. A $180 sales discount was debited to Sales Revenue 3 A cash payment of $81 for freight on merchandise purchases was debited to Freight-Out $810 and credited to Cash $810 Prepare separate correcting entries for each error, assuming that the incorrect entry is not reversed. (Credit account titles are automatically indented when 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.) No. Account Titles and Explanation Debit Credit 1 2. 3. Exercise 5-4 On June 10, Kingbird, Inc. purchased $7,400 of merchandise on account from Ayayai Company, FOB shipping point, terms 1/10, n/30. Kingbird, Inc. pays the freight costs of $460 on June 11. Damaged goods totaling $400 are returned to Ayayai for credit on June 12. The fair value of these goods is $70. On June 19, Kingbird, Inc. pays Ayayai Company in full, less the purchase discount. Both companies use a perpetual inventory system Prepare separate entries for each transaction on the books of Kingbird, Inc.. (Credit account titles are automatically indented when 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. Record journal entries in the order presented in the problem.) Account Titles and Explanation Date Debit Credit Prepare separate entries for each transaction for Ayayai Company. The merchandise purchased by Kingbird, Inc. on June 10 had cost Ayayai $4,800. (Credit account titles are automatically indented when 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. Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit Credit Date (To record credit sale) (To record cost of merchandise sold) CALCULATOR STANDARD VIEW PRINTER VERSION BACK NE ES Prepare separate entries for each transaction for Ayayai Company. The merchandise purchased by Kingbird, Inc. on June 10 had cost Ayayai $4,800. (Credit account titles are automatically indented when 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. Record journal entries in the order presented in the problem.) dy Account Titles and Explanation Debit Credit Date (To record credit sale) (To record cost of merchandise sold) (To record merchandise returned) (To record cost of merchandise returned) June 19
