prepare journal entries

Question 2 [35 points] Prepare journal entries for May 2014 to record the following transactions for X-cell Inc. Assume a perpetual inventory system Enter the transaction letter as the description when preparing a journal entry. When a transaction requires two separate journal entries, use the same letter for both descriptions Dates must be entered in the format dd/mmm (ie. 15/Jan). a. May 6: X-cell Inc sold merchandise to Ludwig Inc. for $9,700 under credit terms of 2/30, n/60, FOB shipping point. The merchandise had cost $8,245 b. May 8: X-cell Inc yold merchandise to XYZ Corporation that cost $7,120 for $8,900 cash. c May 12: Ludwig Inc requested a price reduction on the May 6 sale because the merchandise did not meet specifications Sent Ludwig Inc a credit memorandum for $2,400 to resolve the issue d. May 14. X-cell Inc. sold merchandise that cost $5,015 to Benson Inc. for $5,900 under credit terms of 2/10, n/30, FOB shipping point. e. May 18 Received Benson Inc.'s payment of the amount due from the May 14 sale. f. May 18. Received the balance due from Ludwig Inc. for the sale dated May 6. Please use the '+' and '-' buttons to change the number of accounts (if necessary) for each journal entry General Journal Page GJ8 Date Account/Explanation F Debit Credit