Your answer is partially correct. Try again. Use a tabular summary to record the

Question

Your answer is partially correct. Try again. Use a tabular summary to record the following transactions for Borst Company using a perpetual inventory system. (a) On March 2, Borst Company sold $800,000 of merchandise to Mcleena Company on account. 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 recelved the balance due from McLeena Company. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Assets Liabilities + Stockholders' Equity Retained Earnings Cash Accts. Rec. + Inv. Accts. Pay. Common Stock Rev Exp. a) Mar.2 140000 Sales returns & (140000 c) 12 Qnen Show Work Click if you would like to Show Work for this question:

Explanation / Answer

Effect of transaction :

Retained earnings Cash + Accts Rec + Inv = Accts. Pay + Common Stock + Rev - Exp Mar 2 800000 800000 Sales revenue -540000 -540000 Cost of goods sold Mar 6 -140000 -140000 Sales return and allowance 94000 94000 Mar 12 660000 -660000

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