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The following transactions are for Skysong Company.

The following transactions are for Skysong Company.

1.   On December 3, Skysong Company sold $513,500 of merchandise to Sheridan Co., on account, terms 3/10, n/30. The cost of the merchandise sold was $318,300.
2.   On December 8, Sheridan Co. was granted an allowance of $24,700 for merchandise purchased on December 3.
3.   On December 13, Skysong Company received the balance due from Sheridan Co.


(a)

Prepare the journal entries to record these transactions on the books of Skysong. Skysong uses a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.
Date
Account Titles and Explanation
Debit
Credit
1.
Choose a transaction date for number 1
 Dec. 3Dec. 8Dec. 13Jan. 2
Enter an account title for journal entry 1 to record credit sale
 
enter a debit amount
 
enter a credit amount
 
   
Enter an account title for journal entry 1 to record credit sale
 
enter a debit amount
 
enter a credit amount
 
    (To record sale of merchandise on account)    
 
Choose a transaction date for number 1
 Dec. 3Dec. 8Dec. 13Jan. 2
Enter an account title for journal entry 2 to record cost of merchandise sold
 
enter a debit amount
 
enter a credit amount
 
   
Enter an account title for journal entry 2 to record cost of merchandise sold
 
enter a debit amount
 
enter a credit amount
 
    (To record cost of merchandise sold on account)    
2.
Choose a transaction date for number 2
 Dec. 3Dec. 8Dec. 13Jan. 2
Enter an account title for the third journal entry
 
enter a debit amount
 
enter a credit amount
 
   
Enter an account title for the third journal entry
 
enter a debit amount
 
enter a credit amount
 
3.
Choose a transaction date for number 2
 Dec. 3Dec. 8Dec. 13Jan. 2
Enter an account title for the journal entry on December 13
 
enter a debit amount
 
enter a credit amount
 
   
Enter an account title for the journal entry on December 13
 
enter a debit amount
 
enter a credit amount
 
   
Enter an account title for the journal entry on December 13
 
enter a debit amount
 
enter a credit amount
 


(b)

Assume that Skysong Company received the balance due from Sheridan Co. on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date
Account Titles and Explanation
Debit
Credit
Jan. 2
enter an account title
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title
 
enter a debit amount
 
enter a credit amount
 
 

Sep 22 2020 Read more Less More

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