Your answer is correct prepare the journal entries to

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Financial and Managerial Accounting Using Excel for Success
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Chapter 5 / Exercise EX 5–39
Financial and Managerial Accounting Using Excel for Success
Reeve/Warren
Expert Verified
Your answer is correct.Prepare the journal entries to record the following transactions on Horst Company’s books using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)(a)On March 2, Horst Company sold $800,000 of merchandise to Bernadina Company, terms 2/10, n/30. The cost of the merchandise sold was $540,000.(b)On March 6, Bernadina Company returned $140,000 of the merchandise purchased on March 2.The cost of the merchandise returned was $94,000.(c)On March 12, Horst Company received the balance due from Bernadina Company.Do It! Review 5-2Your answer is correct.On October 5, Narveson Company buys merchandise on account from Rossi Company. The selling price of the goods is $5,000, and the cost to Rossi Company is $3,000. On October 8, Narveson returns defective goods with a selling price of $640 and a scrap value of $240.Record the transactions on the books of Rossi Company, assuming a perpetual approach. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)No.DateAccount Titles and ExplanationDebitCredit(a) March 2accounts receivable800000sales revenue800000(To record sale of merchandise)March 2cost of goods sold540000inventory540000(b) March 6sales returns and allowances140000accounts receivable140000(To record return of merchandise)March 6inventory94000cost of goods sold94000(c) March 12cash646800sales discounts13200accounts receivable660000
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Financial and Managerial Accounting Using Excel for Success
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Chapter 5 / Exercise EX 5–39
Financial and Managerial Accounting Using Excel for Success
Reeve/Warren
Expert Verified
Exercise 5-3Your answer is correct.The following transactions are for Solarte Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)1.On December 3, Solarte Company sold $500,000 of merchandise to Rooney Co., terms 1/10, n/30. The cost of the merchandise sold was $330,000.2.On December 8, Rooney Co. was granted an allowance of $25,000 for merchandise purchased on December 3.3.On December 13, Solarte Company received the balance due from Rooney Co.(a)Prepare the journal entries to record these transactions on the books of Solarte Company. Solarteuses a perpetual inventory system.(b)Assume that Solarte Company received the balance due from Rooney 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.DateAccount Titles and ExplanationDebitCreditOct. 5accounts receivable5000sales revenue5000(To record credit sales)cost of goods sold3000inventory3000Oct. 8sales returns and allowances640accounts receivable640(To record credit granted for receipt of returned goods)inventory240cost of goods sold240

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