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Journal Entries for Merchandise Transactions on Seller's and Buyer's Books-Perpetual System The following are selected transactions for Candello, Inc., during the month of June: June

Journal Entries for Merchandise Transactions on Seller's and Buyer's Books-Perpetual System The following are selected transactions for Candello, Inc., during the month of June:

June 18 Sold and shipped on account to Dante Company, $5,000 ($4,000 at cost) of merchandise, with terms of 2/10, n/30.
25 Dante Company returned merchandise billed at $500 on June 21 ($400 cost.)
27 Received from Dante Company a check for full settlement of the June 21 transaction.

Required Prepare the necessary journal entries for (a) Candello, Inc., and (b) Dante Company. Both companies use the perpetual inventory system.

a. Choose one in description

June 18 AnswerAccounts payableCost of Goods SoldSales DiscountsCashAccounts ReceivableInventorySales Returns and AllowancesSales Revenue Answer Answer
AnswerSales DiscountsCost of Goods SoldInventoryCashAccounts ReceivableSales RevenueAccounts payableSales Returns and Allowances Answer Answer
Sold merchandise to Dante Company terms 2/10, n/30.
18 AnswerSales RevenueCashSales DiscountsSales Returns and AllowancesCost of Goods SoldInventoryAccounts payableAccounts Receivable Answer Answer
AnswerAccounts ReceivableInventorySales RevenueSales DiscountsCost of Goods SoldCashAccounts payableSales Returns and Allowances Answer Answer
Cost of merchandise sold to Dante Company.
25 AnswerCashSales Returns and AllowancesAccounts payableSales DiscountsSales RevenueAccounts ReceivableCost of Goods SoldInventory Answer Answer
AnswerInventorySales RevenueAccounts payableCashSales Returns and AllowancesAccounts ReceivableCost of Goods SoldSales Discounts Answer Answer
Merchandise returned by Dante Company.
25 AnswerInventoryCost of Goods SoldAccounts ReceivableAccounts payableSales DiscountsSales RevenueSales Returns and AllowancesCash Answer Answer
AnswerCost of Goods SoldCashSales DiscountsInventorySales RevenueSales Returns and AllowancesAccounts payableAccounts Receivable Answer Answer
Cost of merchandise returned by Dante Company.
27 AnswerSales DiscountsCost of Goods SoldAccounts ReceivableSales RevenueSales Returns and AllowancesAccounts payableInventoryCash Answer Answer
Sales Discounts Answer Answer
AnswerSales RevenueCashSales Returns and AllowancesAccounts payableAccounts ReceivableInventorySales DiscountsCost of Goods Sold Answer Answer
Received amount due from Dante Company.

b.

June 18 AnswerCost of Goods SoldAccounts ReceivableSales Returns and AllowancesInventorySales DiscountsAccounts payableCashSales Revenue Answer Answer
AnswerSales Returns and AllowancesAccounts ReceivableAccounts payableCost of Goods SoldSales DiscountsSales RevenueInventoryCash Answer Answer
Purchased merchandise from Candello, Inc.; terms 2/10, n/30.
25 AnswerSales RevenueCost of Goods SoldAccounts ReceivableSales Returns and AllowancesAccounts payableCashInventorySales Discounts Answer Answer
AnswerInventoryAccounts payableSales DiscountsSales RevenueCost of Goods SoldAccounts ReceivableSales Returns and AllowancesCash Answer Answer
Returned merchandise to Candello, Inc.
27 AnswerSales DiscountsCashInventorySales RevenueSales Returns and AllowancesAccounts ReceivableAccounts payableCost of Goods Sold Answer Answer
AnswerCashAccounts payableSales Returns and AllowancesCost of Goods SoldSales RevenueSales DiscountsAccounts ReceivableInventory Answer Answer
Cash Answer Answer

Paid amount due to Candello, Inc.

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