Exercise 5-3

Prepare the journal entries to record the following transactions on Ivanhoe Companys books using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

(a)		On March 2, Ivanhoe Company sold $936,300 of merchandise to Pharoah Company, terms 2/10, n/30. The cost of the merchandise sold was $571,700.
(b)		On March 6, Pharoah Company returned $110,600 of the merchandise purchased on March 2. The cost of the merchandise returned was $62,200.
(c)		On March 12, Ivanhoe Company received the balance due from Pharoah Company.

No.	Date	Account Titles and Explanation	Debit	Credit
(a)	March 2March 6March 12
		(To record sale of merchandise)
	March 2March 6March 12
(b)	March 2March 6March 12
		(To record return of merchandise)
	March 2March 6March 12
(c)	March 12