Prepare the journal entries to record the following transactions on Ramirez Comp

Question

Prepare the journal entries to record the following transactions on Ramirez Company's books using a perpetual inventory system.

(a) On March 2 Ramirez Company sold $800,000 of merchandise to Ikerd Company, terms 2/10, n/30. The cost of the merchandise sold was $540,000.
(b) On March 6 Ikerd Company returned $110,000 of the merchandise purchased on March 2. The cost of the merchandise returned was $75,000.
(c) On March 12 Ramirez Company received the balance due from Ikerd Company.

i got confused on part c) please help.

Explanation / Answer

For preparation of last entry- you have to do the calculation as below:- Sales Cost March 02 800,000 540,000 March 06 (Returned) 110,000 75,000 Balance due 690,000 465,000 March 12 (Discount) 13,800 Net amount due 676,200

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