Question
On June 3, 2020, Coronado Company sold to Ann Mount merchandise having a sales price of $8,400 (cost $5,880) with terms of n/60, f.o.b. shipping
On June 3, 2020, Coronado Company sold to Ann Mount merchandise having a sales price of $8,400 (cost $5,880) with terms of n/60, f.o.b. shipping point. Coronado estimates that merchandise with a sales value of $840 will be returned. An invoice totaling $130 was received by Mount on June 8 from Olympic Transport Service for the freight cost. Upon receipt of the goods, on June 8, Mount returned to Coronado $300 of merchandise containing flaws. Coronado estimates the returned items are expected to be resold at a profit. The freight on the returned merchandise was $22, paid by Coronado on June 8. On July 16, the company received a check for the balance due from Mount. Prepare journal entries for Coronado Company to record all the events in June and July. (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.)
Date Account Titles and Explanation Debit Credit (To record sales) (To record cost of goods sold) (To record sales returns) (To record cost of goods returned) (To record the freight cost)Step by Step Solution
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