ssignement Question On October 5, Metlock Company buys merchandse on account fro

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ssignement Question On October 5, Metlock Company buys merchandse on account from Grouper Company. The selling price of the goods in $4,700, and the cost to Grouper is $2,770. On October 8, Metlock Company retums defective goods with a selling price of $740 and a fair value of $130. Record the transactions on the books of Greuper (Credit account titles are automatically indented when amsount is entered. Do not indent manualy. Il no entry is required, select "No Eatry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit (To recoed credt salrs) (To record cest of goods sold on account) (To record credt granted for recept of retuaned goods) (To record far vakue of gosds returned) Rights Reserved. A Drnon of XhnyOnAsens.h Version 4.2z e to search

Explanation / Answer

Journal entry :

Date Accounts & explanation debit credit Oct 5 Account receivable 4700 Sales revenue 4700 (To record credit sales) Oct 5 Cost of goods sold 2770 Merchandise inventory 2770 (To record cost of goods sold on account) Oct 8 Sales return and allowance 740 Account receivable 740 (To recordc credit granted to return goods) Oct 8 Merchandise inventory 130 Cost of goods sold 130 (To record fair value of goods returned)

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