Sales Transactions Buckaroo Company and Yearling Company entered into the follow

ID: 2507954 • Letter: S

Question

Sales Transactions

Buckaroo Company and Yearling Company entered into the following transactions:

a. Buckaroo Company sold merchandise to Yearling Company for $135,000, terms 2/10, n/30

.
b. Prior to payment, Yearling Company returned $14,000 of the merchandise for credit

.
c. Yearling Company paid Buckaroo Company in full within the discount period.

d. Yearling Company paid Buckaroo Company in full after the discount period. [Assume that transaction (c) did not occur.]

Required:
Prepare journal entries to record the transactions for Buckaroo Company (the seller).

a. Buckaroo Company sold merchandise to Yearling Company for $135,000, terms 2/10, n/30

Debit: Accounts receivable 135,000

Credit: Sales revenue 135,000

.
b. Prior to payment, Yearling Company returned $14,000 of the merchandise for credit

Debit: Sales returns and allowances 14,000

Credit: Accounts receivable

c. Yearling Company paid Buckaroo Company in full within the discount period.

Debit: Cash 118,580

Debit: Sales discounts 2,420

Credit: Accounts receivable 121,000

d. Yearling Company paid Buckaroo Company in full after the discount period. [Assume that transaction (c) did not occur.]

Debit: Cash 121,000

Credit: Accounts receivable 121,000

Required:
Prepare journal entries to record the transactions for Buckaroo Company (the seller).

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