q11 -ii

Question 11 of 11 (To record credit for goods returned.) (To record cost of goods returned.) Question 11 of 11 120 (To record credit for goods returned.) (To record cost of goods returned that were scrapped.) eTextbook and Media Ust of Accounts Sovefortater Attempts: 0 of 2 used Submit Ariwer Question 11 of 11 -120 j I (To record sales on account.) (To record cost at goods sold) Current Attempt in Progress Presented below are selected transactions for Whispering Winds Company during February and March of the current year. Whispering Winds uses a perpetual imventory system and the contract-based approach for revenue recognition. Whispering Winds Company has a stated return policy of 15 days from the date of sale and management estimates returns at 10% of sales. Feb. 1 Purchased merchandise on account from Neon Company at a cost of $37,800, terms 1/15,n/30 FOB destination. 2 The correct company paid $700 of freipht charbes to Axon Trucking on the February 1 merchandise purchase. 5 Returned for eredit $2,800 of damaged goods purchased from Neon Company on February 1. 15 Sold the remaining merchandse purchased from Neon Company to Sharpe Company for $70,000, terms n/30, FOB destination. 16 The correct company paid $600 of freight charges on the February 15 sale of merchandise. 17 Issued Sharpe Company a credit of $7,000 for retumed goods. These Eods cost Whispering Winds Congamy $3500 and were returned to inventory. 28 Paid Neon Company the balance owing for the February 1 purchase. Mar. 1 Purchased merchaedise on account from Tenon Compary at a cost of $50,000, terms 2/10, n/30, Fo shipping paint. 2 The correct corngary paid freight casis of 51,200 on the March 1 purchase. 10 Pald fenon Compay the arount owing on the March 1 surchase. shipging point. 12 Theconinct comenov paid $1,700 freight costs on the March 11 sale, 14 Collected the amount due from Sharpe Company. 18 Ashen Company returned damaged goods in the amount of $10,000. The goods cost Whispering Winds Company $5,000 and were scrapped. 31 Received a cheque from Ashen Company for the balance owing on the March 11 sale. Prepare journal entries to record the above transactions for Whispering Winds Company. (Hint: Purchase transactions are recorded the same way when using the contract-based approach as when using the earnings approach) (Credit account titles are automatically indented when the 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. Record journal entries in the order presented in the problem. List all debit entries before credit entries.]