Prepare the journal entries to record the following transactions on Pina Colada Corp.$\text{'}$s books using a perpetual inventory system. The first two are confirmed correct, but I am including them for context. Question $1$ of $3$

$\frac{2\mathrm{.}5}{3}$

Prepare the journal entries to record the following transactions on Pina Colada Corp.$\text{'}$s books using a perpetual inventory system.

Your answer is correct.

On March $2,$ Pina Colada Corp. sold $$889,000$ of merchandise on account to Flint Company, terms $\frac{3}{10},\frac{n}{30}.$ The cost of the merchandise sold was $$599,000.($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.$)$

Account Titles and Explanation

Debit

Credit

Accounts Receivable

Sales Revenue

$($To record credit sale$)$

Cost of Goods Sold

Inventory

$($To record cost of merchandise sold$)$

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$599,000$

Question $1$ of $3$

$\frac{2\mathrm{.}5}{3}$

Your answer is correct.

On March $6,$ Flint Company returned $$88,900$ of the merchandise purchased on March $2.$ The cost of the returned merchandise was $$59,900.($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.$)$

Account Titles and Explanation

Debit

Credit

Sales Returns and Allowances

$88,900$

$($To record merchandise returned$)$

Cost of Goods Sold

$($To record cost of merchandise returned$)$

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Listof Accolunte

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Question $1$ of $3$

$\frac{2\mathrm{.}5}{3}$

Your answer is partially correct.

On March $12,$ Pina Colada Corp. received the balance due from Flint Company. $($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.$)$

Account Titles and Explanation

Debit

Credit

Cash

Sales Discounts

Accounts Receivable

eTextbook and Media

List of Accounts

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