Please help to answe the question. Prepare the journal entries to record the fol

Question

Please help to answe the question.

Prepare the journal entries to record the following transactions on Horst Company's books using a perpetual inventory system. (a) On March 2, Horst Company sold 932,200 of merchandise to Bernadina Company, terms 2/10, n/30. The cost of the merchandise sold was 579,800. (b) On March 6, Bernadina Company returned 102,000 of the merchandise purchased on March 2. The cost of the merchandise returned was 66,060. (c) On March 12, Horst Company received the balance due from Bernadina Company.

Explanation / Answer

CASH                          813400

DISCOUNT                    16600

NET SALES                830000

TOTAL SALES             932200 - 102000 = 830000

DISCOUNT OF 2% ON PAYMENT IF PAYMENT IS MADE WITHIN 10 DAYS

830000*2% = 16600

NET PAYMENT = 830000-16600 = 813400

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.