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Prepare the journal entries to record the following transactions on Sheridan Companys books using a perpetual inventory system. (If no entry is required, select No
Prepare the journal entries to record the following transactions on Sheridan Companys books using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. 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) | On March 2, Crane Company sold $890,100 of merchandise to Sheridan Company, terms 2/10, n/30. The cost of the merchandise sold was $528,500. | |
(b) | On March 6, Sheridan Company returned $100,500 of the merchandise purchased on March 2. The cost of the merchandise returned was $68,700. | |
(c) | On March 12, Crane Company received the balance due from Sheridan Company. |
No | Date | Accounts titles and explanation | Debit | Credit |
a) | March 2 | |||
a) | March 2 | |||
b) | March 6 | |||
b) | March 6 | |||
c) | March 12 | |||
c) | March 12 |
*Please also provide info on how the calculations were found.
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