Brief Exercise 5-4 Prepare the journal entries to record the following transacti
ID: 2410313 • Letter: B
Question
Brief Exercise 5-4 Prepare the journal entries to record the following transactions on McLeena Company's books using a perpetual inventory system. (If no entry is required, select '"No Entry" for the account titles and enter O for the amounts. 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, Borst Company sold $800,000 of merchandise to McLeena Company, terms 2/10, n/30. The cost of the merchandise sold was $540,000. (b) On March 6, McLeena Company returned $140,000 of the merchandise purchased on March 2. The cost of the merchandise returned was $94,000. (c) On March 12, Borst Company received the balance due from McLeena Company. No. Date Account Titles and Explanation Debit CreditExplanation / Answer
Journal Entries in the books of McLeena Company
Date
Accounts Tittles and Explanations
Debit ($)
Credit ($)
a
March 2
Accounts Receivable A/c
800,000
To Sales A/c
800,000
[ To record sale of merchandise inventory ]
b
March 6
Sales returns and allowances A/c
140,000
To Accounts Receivable A/c
140,000
[ To record return of merchandise returned]
c
March 12
Cash A/c [ 660,000 -13,200 ]
646,800
Sales Discounts A/c [ 660,000 x 2% ]
13,200
To Accounts Receivable A/c [ 800,000 – 140,000]
660,000
[To record the payment received from Bernadina Company ]
Date
Accounts Tittles and Explanations
Debit ($)
Credit ($)
a
March 2
Accounts Receivable A/c
800,000
To Sales A/c
800,000
[ To record sale of merchandise inventory ]
b
March 6
Sales returns and allowances A/c
140,000
To Accounts Receivable A/c
140,000
[ To record return of merchandise returned]
c
March 12
Cash A/c [ 660,000 -13,200 ]
646,800
Sales Discounts A/c [ 660,000 x 2% ]
13,200
To Accounts Receivable A/c [ 800,000 – 140,000]
660,000
[To record the payment received from Bernadina Company ]
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