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The following transactions are for Oriole Company. 1. 2. 3. On December 3, Oriole Company sold $576,200 of merchandise to Sheffield Co., on account, terms
The following transactions are for Oriole Company. 1. 2. 3. On December 3, Oriole Company sold $576,200 of merchandise to Sheffield Co., on account, terms 2/10, n/30, FOB destination. Oriole paid $490 for freight charges. The cost of the merchandise sold was $385,100. On December 8, Sheffield Co. was granted an allowance of $24,200 for merchandise purchased on December 3. On December 13, Oriole Company received the balance due from Sheffield Co. (a) Your answer is partially correct. Prepare the journal entries to record these transactions on the books of Oriole Company using a perpetual inventory system. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Dec. 3 Accounts Receivable Sales Revenue (To record credit sale) Dec. 3 Cost of Goods Sold Dec. 3: Inventory (To record cost of merchandise sold) Freight-Out Cash Debit 576200 385100 490 Credit 5762 3851 Date Account Titles and Explanation Debit Dec. 3 Accounts Receivable Sales Revenue (To record credit sale) Dec. 3 = Cost of Goods Sold Dec. 3 Inventory (To record cost of merchandise sold) Freight-Out Cash (To record freight charges) 576200 385100 490 Dec. 8 Sales Returns and Allowances 24200 Accounts Receivable Dec. 13: Cash Sales Discounts Credit 5762 3851 242
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