The following merchandise transactions occurred in December Both companies use a perpetual inventory system Dec 3 Ivanhoe Company sold merchandise to Thomas Co for $38,000, terms 2 10, n 30, FOB destination This merchandise cost Ivanhoe Company $18,000 4 The correct company paid freight charges of $775 8 Thomas Co returned unwanted merchandise to Ivanhoe The returned merchandise had a sales price of $1,900 and a cost of $990 It was restored to inventory 13 Ivanhoe Company received the balance due from Thomas Co Prepare the journal entries to record these transactions on the books of Ivanhoe Company (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 ) Date Account Titles and Explanation Debit Credit Dec 3Dec 4Dec 8Dec 13 (To record sales on account ) Dec 3Dec 4Dec 8Dec 13 (To record cost of goods sold ) Dec 3Dec 4Dec 8Dec 13 (Cash payment for freight costs ) Dec 3Dec 4Dec 8Dec 13 (To record credit for goods returned ) Dec 3Dec 4Dec 8Dec 13 (To record cost of goods returned ) Dec 13 (Collection on account ) Prepare the journal entries to record these transactions on the books of Thomas Co (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 ) Date Account Titles and Explanation Debit Credit Dec 3Dec 4Dec 8Dec 13 (Purchase on account ) Dec 3Dec 4Dec 8Dec 13 Dec 3Dec 4Dec 8Dec 13 (To record purchase return ) Dec 3Dec 4Dec 8Dec 13 (Payment on account )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 10, 2024

The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec. 3 Ivanhoe Company sold merchandise to Thomas Co. for $38,000,

The following merchandise transactions occurred in December. Both companies use a perpetual inventory system.

Dec. 3		Ivanhoe Company sold merchandise to Thomas Co. for $38,000, terms 2/10, n/30, FOB destination. This merchandise cost Ivanhoe Company $18,000.
4		The correct company paid freight charges of $775.
8		Thomas Co. returned unwanted merchandise to Ivanhoe. The returned merchandise had a sales price of $1,900 and a cost of $990. It was restored to inventory.
13		Ivanhoe Company received the balance due from Thomas Co.

Prepare the journal entries to record these transactions on the books of Ivanhoe Company. (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.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 3Dec. 4Dec. 8Dec. 13

	(To record sales on account.)
Dec. 3Dec. 4Dec. 8Dec. 13

	(To record cost of goods sold.)
Dec. 3Dec. 4Dec. 8Dec. 13

	(Cash payment for freight costs.)
Dec. 3Dec. 4Dec. 8Dec. 13

	(To record credit for goods returned.)
Dec. 3Dec. 4Dec. 8Dec. 13

	(To record cost of goods returned.)
Dec. 13


	(Collection on account.)

Prepare the journal entries to record these transactions on the books of Thomas Co. (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.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 3Dec. 4Dec. 8Dec. 13

	(Purchase on account.)
Dec. 3Dec. 4Dec. 8Dec. 13

Dec. 3Dec. 4Dec. 8Dec. 13

	(To record purchase return.)
Dec. 3Dec. 4Dec. 8Dec. 13


	(Payment on account.)