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Swifty Company sold merchandise to Moore Company on account for $90,000 with credit terms of ?/10, n/30. The cost of the merchandise sold was
Swifty Company sold merchandise to Moore Company on account for $90,000 with credit terms of ?/10, n/30. The cost of the merchandise sold was $66,000. During the discount period, Moore Company returned $4,500 of merchandise and paid its account in full (minus the discount) by remitting $82,935 in cash. Both companies use a perpetual inventory system. Prepare the journal entries that Swifty Company made to record the: (1) sale of merchandise. (2) return of merchandise. (3) collection on account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (1) (To record credit sale)
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