On June 10, Crane Company purchased $6,100 of merchandise from Sheridan Company,

Question

On June 10, Crane Company purchased $6,100 of merchandise from Sheridan Company, terms 2/10, n/30. Crane Company pays the freight costs of $360 on June 11. Goods totaling $400 are returned to Sheridan Company for credit on June 12. On June 19, Crane Company pays Sheridan Company in full, less the purchase discount. Both companies use a perpetual inventory system.
Problem. Prepare separate entries for each transaction for Sheridan Company. The merchandise purchased by Crane Company on June 10 cost Sheridan Company $2,000, and the goods returned cost Sheridan Company $200. (If no entry is required, select "No entry" for the account titles and enter 0 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.)
On June 10, Crane Company purchased $6,100 of merchandise from Sheridan Company, terms 2/10, n/30. Crane Company pays the freight costs of $360 on June 11. Goods totaling $400 are returned to Sheridan Company for credit on June 12. On June 19, Crane Company pays Sheridan Company in full, less the purchase discount. Both companies use a perpetual inventory system.
Problem. Prepare separate entries for each transaction for Sheridan Company. The merchandise purchased by Crane Company on June 10 cost Sheridan Company $2,000, and the goods returned cost Sheridan Company $200. (If no entry is required, select "No entry" for the account titles and enter 0 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.)
On June 10, Crane Company purchased $6,100 of merchandise from Sheridan Company, terms 2/10, n/30. Crane Company pays the freight costs of $360 on June 11. Goods totaling $400 are returned to Sheridan Company for credit on June 12. On June 19, Crane Company pays Sheridan Company in full, less the purchase discount. Both companies use a perpetual inventory system.
Problem. Prepare separate entries for each transaction for Sheridan Company. The merchandise purchased by Crane Company on June 10 cost Sheridan Company $2,000, and the goods returned cost Sheridan Company $200. (If no entry is required, select "No entry" for the account titles and enter 0 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.)

Explanation / Answer

Jun-10 Accounts receivable 6100                 Sales revenue 6100 Cost of goods sold 2000                 Inventory 2000 Jun-11 Sales return and allowance 400                 Accounts receivable 400 Inventory 200                Cost of goods sold 200 Jun-19 Cash 5586 Sales discount 114 (5700*2%)               Accounts receivable 5700

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