Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Presented below are transactions related to Sheridan Company. 1. On December 3, Sheridan Company sold $613,400 of merchandise to Grouper Co., terms 2/10, n/30, FOB
Presented below are transactions related to Sheridan Company.
1. | On December 3, Sheridan Company sold $613,400 of merchandise to Grouper Co., terms 2/10, n/30, FOB destination. Sheridan paid $570 for freight charges. The cost of the merchandise sold was $354,500. | |
2. | On December 8, Grouper Co. was granted an allowance of $29,600 for merchandise purchased on December 3. | |
3. | On December 13, Sheridan Company received the balance due from Grouper Co. |
Date Account Titles and Explanation Debit Credit Dec. 3 Accounts Receivable 613400 Sales Revenue 613400 (To record credit sale) Dec. 3 Cost of Goods Sold 354500 Inventory 354500 (To record cost of merchandise sold) Dec. 3 Freight-Out 570 Cash 570 (To record freight charges) Dec. 8 Sales Returns and Allowances 29600 Accounts Receivable 29600 Dec. 13 Cash 566286 Sales Discounts 17514 Accounts Receivable 583800
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started