Question
On June 3, 2020, Pronghorn 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, Pronghorn 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. Pronghorn estimates that merchandise with a sales value of $840 will be returned. An invoice totaling $100 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 Pronghorn $300 of merchandise containing flaws. Pronghorn estimates the returned items are expected to be resold at a profit. The freight on the returned merchandise was $25, paid by Pronghorn on June 8. On July 16, the company received a check for the balance due from Mount. Prepare journal entries for Pronghorn 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 |
Jun. 3, 2020Jun. 8, 2020Jul. 16, 2020 | |||
(To record sales) | |||
(To record cost of goods sold) | |||
Jun. 3, 2020Jun. 8, 2020Jul. 16, 2020 | |||
(To record sales returns) | |||
(To record cost of goods returned) | |||
Jun. 3, 2020Jun. 8, 2020Jul. 16, 2020 | |||
(To record the freight cost) | |||
Jun. 3, 2020Jun. 8, 2020Jul. 16, 2020 | |||
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