The following transactions are for Mack Company. 1.On December 3 Mack Company so

Question

The following transactions are for Mack Company.

1.On December 3 Mack Company sold $500,000 of merchandise to Pickert Co., terms 1/10, n/30. The cost of the merchandise sold was $320,000.
2.On December 8 Pickert Co. was granted an allowance of $28,000 for merchandise purchased on December 3.
3.On December 13 Mack Company received the balance due from Pickert Co.

-Instruction:Prepare the journal entries to record these transactions on the books of Mack Company. Mack uses a perpetual inventory system.

Explanation / Answer

3-Dec

8-Dec

13-Dec

B.

2-Jan

A.

3-Dec

Accounts Receivable $500,000           Sales $500,000 Cost of goods sold $320,000         Merchandise Inventory $320,000

8-Dec

Sales return&allowance $28,000         Accountsreceivable $28,000

13-Dec

Cash $467,280 Sales Discount $4,720       AccountsReceivable $472,000

B.

2-Jan

Cash $472,000       Accountsreceivable $472,000

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