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 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.

CANDELLO, INC. GENERAL JOURNAL
Date		Description	Debit	Credit
June	18	AnswerAccounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		AnswerAccounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Sold merchandise to Dante Company terms 2/10, n/30.
	18	AnswerAccounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		AnswerAccounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Cost of merchandise sold to Dante Company.
	25	AnswerAccounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		AnswerAccounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Merchandise returned by Dante Company.
	25	AnswerAccounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		AnswerAccounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Cost of merchandise returned by Dante Company.
	27	AnswerAccounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Sales Discounts	Answer	Answer
		AnswerAccounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Received amount due from Dante Company.

b.

DANTE COMPANY GENERAL JOURNAL
Date		Description	Debit	Credit
June	18	AnswerAccounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		AnswerAccounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Purchased merchandise from Candello, Inc.; terms 2/10, n/30.
	25	AnswerAccounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		AnswerAccounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Returned merchandise to Candello, Inc.
	27	AnswerAccounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		AnswerAccounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Cash	Answer	Answer
		Paid amount due to Candello, Inc.