Two different companies, Ripper and Berners, entered into the following inventor
ID: 2412952 • Letter: T
Question
Two different companies, Ripper and Berners, entered into the following inventory transactions during December. Both companies use a perpetual inventory system.
December 3 – Ripper Corporation sold inventory on account to Berners Corp. for $496,000, terms 2/10, n/30. This inventory originally cost Ripper $314,000.
December 8 – Berners Corp. returned inventory to Ripper Corporation for a credit of $3,900. Ripper returned this inventory to inventory at its original cost of $2,469.
Prepare the journal entries to record these transactions on the books of Ripper Corporation. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Two different companies, Ripper and Berners, entered into the following inventory transactions during December. Both companies use a perpetual inventory system.
Explanation / Answer
Journal entry :
Date accounts & explanation debit credit Dec 3 Account receivable 496000 Sales revenue 496000 (To record credit sales) Cost of goods sold 314000 Merchandise inventory 314000 (To record cost of goods sold) Dec 8 Sales return and allowance 3900 Account receivable 3900 (TO record sales return) Merchandise inventory 2469 Cost of goods sold 2469 (To record cost of returned goods) Dec 12 Cash (492100*98%) 482258 Sales discount 9842 Account receivable (496000-3900) 492100 (To record amount received)Related Questions
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