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Prepare the journal entries to record the following transactions on Horst Company's books using a perpetual inventory system. (Credit account titles are automatically indented when
Prepare the journal entries to record the following transactions on Horst Company's books using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (a) (b) (c) On March 2, Horst Company sold $869,000 of merchandise to Bernadina Company, terms 3/10, n/30. The cost of the merchandise sold was $592,200. On March 6, Bernadina Company returned $118,400 of the merchandise purchased on March 2. The cost of the merchandise returned was $69,330. On March 12, Horst Company received the balance due from Bernadina Company. Debit Credit No. Date Account Titles and Explanation (a) March 2 TAccounts Receivable 1869000 T869000 Sales Revenue (To record sale of merchandise) March 2Cost of Goods Sold 1592200 Tinventory 592200 (b) Thar March 6 Sales Returns and Allowances T118400 118400 TAccounts Receivable (To record return of merchandise) TMarch 6 Inventory 69330 x cost D 169330 (c) March 125 Cash [49070 Sales Discounts 15012 TAccounts Receivable TT853988
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