* Question 9 (of 20 next weet 25.00 points Problem 6-197 LO 6-4, LO 6-5) Two dif
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* Question 9 (of 20 next weet 25.00 points Problem 6-197 LO 6-4, LO 6-5) Two different companies, Ripper and Berners, entered into the following inventory transaction suing DecemberBoth companies use a perpetual inventory system. December 3- Ripper Corporation sold inventory on account to Berners Corp. for $487,000, terms are N30 This inventory originally cost Ripper $308,000. December 8 - Bermers Corp. returned inventory to Ripper Corporation for a credit of $4,900 Ripped returned this inventory to inventory at its original cost of $3,099, December 12 - Berners Corp paid Ripper Corporation for the amount owed Required; a . prepare the journal entries to record these transactions on the books of Ripper Corporation. (If no on is required for a transaction /event, select "No Journal Entry required" in the airst account tied) view transaction list view general journal General Journal Dec 03 Accounts Receivable Debit Credit Common StockExplanation / Answer
Journal entries
Date
Description
Debit
Credit
Dec 3
Account receivable
$487,000
To Sales
$487,000
Cost of goods sold
$308,000
To inventory
$308,000
Dec 8
Sales return and allowances
$4,900
To Account receivable
$4,900
Inventory
3,099
To Cost of goods sold
3,099
Dec 12
Cash
472,458
Sales discount
9,642
To Account receivable
$482,100
b)
Net sales
$472,458
c) Gross profit
Gross profit % = (sales – COGS) / sales
=35%
Date
Description
Debit
Credit
Dec 3
Account receivable
$487,000
To Sales
$487,000
Cost of goods sold
$308,000
To inventory
$308,000
Dec 8
Sales return and allowances
$4,900
To Account receivable
$4,900
Inventory
3,099
To Cost of goods sold
3,099
Dec 12
Cash
472,458
Sales discount
9,642
To Account receivable
$482,100
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