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91% | Thu 11:38 AM ora Radio-Latento.-x/ d wileypus h edugen. edugen.wileyplus.c

ID: 2420373 • Letter: 9

Question

91% | Thu 11:38 AM ora Radio-Latento.-x/ d wileypus h edugen. edugen.wileyplus.com/edugen/student/mainfr.uni CALCULATOm TOR M MESSAGE HY INSTRUCTOR URCES FULL SCREEN PRINTER BACK Brief Exercise 5-4 (Part Level Submission) Prepare the journal entries to record these transactions on Sensat Company's books under a perpetual Inventory system (a) Your answer is partialy correct. Try again. g Company sold $900,000 of merchandise to Sensat Company, terms 2/10, n/30. The cost of the merchandise sold was $620,000.(Credit account On March 2, Kwan titles are automatically Indented when amount is entered. Do not Indent manually) Study Debit Accounts Receivable 900000 sales revenue 900000 Attempts: 2 of 4 used sAVE FOR LATER USHIT ANSWER The parts of the question must be conpleted in order Ths aur wlt se avolabe when you compatete the pr sbove extra credit sheet (2) doc

Explanation / Answer

You have to record the transaction in the purchaser's books (Sensat company's books) and not on Seller's books.

Journal Entry

Merchandise Inventory Dr     $ 900,000

   Accoun ts Payable                       $ 900,000

(Being goods purchased from Kwang company on terms 2/10, n/30)