Exercise 8-1 Presented below are selected transactions of Menge Company. Menge s

Question

Exercise 8-1 Presented below are selected transactions of Menge Company. Menge sells in large quantities to other companies and also sells its product in a small retail outlet. March Sold merchandise on account to Lynda Company for $12,200, terms 6/10, n/30 3 Lynda Company returned merchandise worth $300 to Menge 9 Menge collected the amount due from Lynda Company from the March 1 sale. 15 Menge sold merchandise for $1,000 in its retail outlet. The customer used his Mene credit card 31 Menge added 1% monthly interest to the customer's credit card balance. Prepare journal entries for the transactions above. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Explanation / Answer

Date Account titles and explanation Debit Credit March 1 Accounts Receivable-Lynda Company $12,200 Sales $12,200 March 3 Sales Return and Allowance $300 Accounts Receivable-Lynda Company $300 March 9 Cash $11,186 Sales Discounts($11,900 × 6%) $714 Accounts Receivable-Lynda Company $11,900 March 15 Accounts Receivable $1,000 Sales $1,000 March 31 Accounts Receivable ($1,000 × 1%) $100 Interest Revenue $100

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