QUESTION 2

1. Record Crane Companys journal entries for the following events. Use the following account abbreviations: AR = accounts receivable; CASH = cash; REV = Sales revenue; ALL = allowance for doubtful accounts; RET = returns; DISC = sales discount.

   Note: in part c, two accounts are debited. Enter these in alphabetical order, for example, ALL before CASH.

   • On July 1, Crane Company sold merchandise on account to Stacey Inc. for $25,200, terms 4/10, n/30. Debit: Credit:
   • On July 8, Stacey Inc. returned merchandise to Crane Company for a credit refund of $2,500. Debit: Credit:
   • On July 11, Stacey Inc. paid for the merchandise. Debit: Debit: Credit: