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Unformatted text preview: Date General Journal Debit Credit May 15 Sales Returns and Allowances 411 Accounts Receivable 411 May 15 Merchandise Inventory 203 Cost of Goods Sold 203 Mechanic Parts was organized on May 1, 2009, and made its first purchase of merchandise on May 3. The purchase was for 1,200 units at a price of $7 per unit. On May 5, Mechanic Parts sold 720 of the units for $11 per unit to Radica Co. Terms of the sale were 2/10, n/60. Prepare the appropriate journal entries for Radica Co. to record the May 5 purchase and each of the three separate transactions a through c . Radica is a retailer that uses a perpetual inventory system and purchases these units for resale. (Omit the "$" sign in your response.) Date General Journal Debit Credit May 5 Merchandise Inventory 7,920 Accounts Payable 7,920 (a) On May 7, Radica returns 251 units because they did not fit the customer's needs. Mechanic Parts...
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- Spring '10