Question
The following transactions are for Splish Brothers Company. 1. On December 3, Splish Brothers Company sold $515,600 of merchandise to Sunland Co., on account, terms
The following transactions are for Splish Brothers Company.
1. | On December 3, Splish Brothers Company sold $515,600 of merchandise to Sunland Co., on account, terms 3/10, n/30. The cost of the merchandise sold was $320,500. | |
2. | On December 8, Sunland Co. was granted an allowance of $24,000 for merchandise purchased on December 3. | |
3. | On December 13, Splish Brothers Company received the balance due from Sunland Co. |
(a) Prepare the journal entries to record these transactions on the books of Splish Brothers. Splish Brothers uses a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No. | Date | Account Titles and Explanation | Debit | Credit | |
---|---|---|---|---|---|
1. | Choose a transaction date for number 1 Dec. 3Dec. 8Dec. 13Jan. 2 | Enter an account title for journal entry 1 to record credit sale | enter a debit amount | enter a credit amount | |
Enter an account title for journal entry 1 to record credit sale | enter a debit amount | enter a credit amount | |||
(To record sale of merchandise on account) | |||||
Choose a transaction date for number 1 Dec. 3Dec. 8Dec. 13Jan. 2 | Enter an account title for journal entry 2 to record cost of merchandise sold | enter a debit amount | enter a credit amount | ||
Enter an account title for journal entry 2 to record cost of merchandise sold | enter a debit amount | enter a credit amount | |||
(To record cost of merchandise sold on account) | |||||
2. | Choose a transaction date for number 2 Dec. 3Dec. 8Dec. 13Jan. 2 | Enter an account title for the third journal entry | enter a debit amount | enter a credit amount | |
Enter an account title for the third journal entry | enter a debit amount | enter a credit amount | |||
3. |
| Enter an account title for the journal entry on December 13 | enter a debit amount | enter a credit amount | |
Enter an account title for the journal entry on December 13 | enter a debit amount | enter a credit amount | |||
Enter an account title for the journal entry on December 13 | enter a debit amount | enter a credit amount |
(b) Assume that Splish Brothers Company received the balance due from Sunland Co. on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
Jan. 2 | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount |
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