Journal Entries for Merchandise Transactions on Seller\'s and Buyer\'s Books- Pe

Question

Journal Entries for Merchandise Transactions on Seller's and Buyer's Books- Perpetual System The following transaction occurred between the Decker Company and Mann Stores, Inc., during March: Mar. 8 10 12 17 20 Decker sold $14,000 worth of merchandise ($9,600 cost) to Mann Stores with terms of 2/10, n/30 Mann Stores paid freight charges on the shipment from Decker Company, $500 Mann Stores returned $2,000 of the merchandise ($1,600 cost) shipped on March 8 Decker received full payment for the net amount due from the March 8 sale. Mann Stores returned goods that had been billed originally at $800 ($600 cost). Decker isssued a check for $784 Required Prepare the necessary journal entries for (a) the books of Decker Company and (b) the books of Mann Stores, Inc. Assume that both companies use the perpetual inventory system. DECKER COMPANY GENERAL JOURNAL Date Description Debit Credit Mar. 8 Accounts Receivable $14,000 $ Sales Revenue 14,000 Sold goods to Mann Stores terms 2/10, n/30. Cost of goods sold to Mann Stores.

Explanation / Answer

a. Journal (in the books of Decker Company)

b. Journal (in the books of Mann Stores)

Date Account Name Debit Credit Mar 8 Accounts receivable $14000 Sales revenue $14000 Mar 8 Cost of goods sold 9600 Inventory 9600 Mar 12 Sales returns and allowances 2000 Accounts receivable 2000 Mar 12 Inventory 1600 Cost of goods sold 1600 Mar 17 Cash 11760 Sales discounts (12000 x 2%) 240 Accounts receivable (14000-2000) 12000 Mar 20 Sales returns and allowances 800 Sales discount 16 Cash 784 Mar 20 Inventory 600 Cost of goods sold 600

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.