Brief Exercise 5-3 Prepare the journal entries to record the following transacti

Question

Brief Exercise 5-3 Prepare the journal entries to record the following transactions on Blossom Company's books using a perpetual inventory system. (It 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, Blossom Company sold $850,000 of merchandise to Sunland Company, tems 2/10, n/30. The cost of the merchandise sold was s500,000. (b) On March 6, Sunland Company returned $100,000 of the merchandise purchased on March 2. The cost of the merchandise returned was s60,000 (c) On March 12, Blossom Company received the balance due from Sunland Company. No. Date Account Titles and Explanation Debit Credit (To record sale of merchandise (To record raturn of merchandise) tudv

Explanation / Answer

Date Account Debit credit March 2 Accounts receivable 850000 sales revenue 850000 [To record sales] cost of good sold 500000 merchandise inventory 500000 [To record cost of sales] march 6 sales return and allowance 100000 Accounts receivable 100000 Merchandise inventory 60000 Cost of goods sold 60000 March 12 cash 735000 sales discount [750000*.02] 15000 Accounts receivable [850000-100000] 750000

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