The following transactions are for Crane Company. 1., Decenter 3, Oane Company s

Question

The following transactions are for Crane Company. 1., Decenter 3, Oane Company sold $479.600 of merchandse to Sheridan a, terms ino, nao. The cost or the mechode soli 2. On December 8, Sheridan Co, was granted an allowance of $24,500 for merchandise purchased on December 3 3. On December 13, Crane Company received the balance due from Shendan Co masoa Prepare the yournal entries to record these transactions on the books of Crane Company Crane Company uses a perpetual inventory system (It no entry is required, select "No Entry" for the accont eitles and enter o for the mounts Credit account titles are automatically indented whe amount is enteresd, Do not indent manually) Na. Date NDunt Titles and Explanation Deit Credt To secoed codt of merchandse sokf) the yournal entry to record the recespt of payment on January 2. (If no entry is Assume that Grane Company recesved the balance due from Shendan Co. on anaary 2 of the folowing year instead of December 13. Prepare select "No Eatry" for thee accouwat tities and enter o required 0 for the ammounts. Crehit account titles are aufomuatically indented w t is enteresd Do not indent msanually) Date Account Tales and Explanation

Explanation / Answer

Books of Crane Company

Journal Entries

(a)

Dec 3 Sheridan Co. A/c Dr 479,600

To Sales A/c   479,600

(Being merchandise sold on terms 1/10, n/30)

Dec 8 Allowance granted A/c Dr 24,500

To Sheridan Co A/c 24,500

(Being allowance granted to Sheridan Co.)

Dec 13 Bank A/c Dr 450,549

Discount Allowed Ac Dr 4,551

To Sheridan Co A/c 455,100

(Being amount due from Sheridan Co

received withing 10 days and discount

allowed 1% as per terms)

(b) If balance due was received on Jan 2 instead of Dec 13

Jan 2 Bank a/c Dr 455,100

To Sheridan Co A/c 455,100

(Being amount due from Sheridan

Co received, but no discount was

allowed as the payment was made

after 10 days from invoice date.)

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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