BES-6 Refer to BES-5 and prepare the journal entries to record the following sal

Question

BES-6 Refer to BES-5 and prepare the journal entries to record the following sales transactions in Fundy Corp.s booka Fundy uses a perpetual inventory system. Jan. 2 Fundy sold $15,000 of merchandise to Xtra Inc, terms 2/10, n/45, FOB destination. The cost of the merchandise sold was $11,250. 5 The appropriate company paid freight costs of $300. 6 Xtra returned $2,000 of the merchandise purchased from Fundy on January 2, because it was not needed. The cost of the merchandise returned was $1,500, and it was restored to inventory Fundy received the balance due from Xtra. 11

Explanation / Answer

The following journal entries will be prepared to record the given transactions:

Date Account Title Debit Credit Jan. 2 Accounts Receivable 15000       Sales Reveue 15000 Cost of Good Sold 11250       Merchandise Inventory 11250 Jan. 5 Freight-out 300       Cash 300 Jan. 6 Sales Returns and Allowances 2000       Accounts Receivable 2000 Merchandise Inventory 1500       Cost of Goods Sold 1500 Jan. 11 Cash [($15,000-$2,000)x98%] 12740 Sales Discount [($15,000-$2,000)x2%] 260       Accounts Receivable ($15,000-$2,000) 13000

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