Question

Prepare the journal entries to record the following transactions on Panther Company’s books using a perpetual inventory system. (For multiple debit/credit entries, list accounts in order of magnitude.)


(a) On March 2 Panther Company sold $853,700 of merchandise to Eagle Company, terms 3/10, n/30. The cost of the merchandise sold was $575,500.
(b) On March 6 Eagle Company returned $113,900 of the merchandise purchased on March 2. The cost of the merchandise returned was $66,530.
(c) On March 12 Panther Company received the balance due from Eagle Company.
plz help

Answer 1

Accounts received

Answer 2

2/3
Account Receivable 853.700
Sales 853.700
Cost of goods sold 575.500
Inventory 575.500

6/3
Sales Return 113.900
Account Receivable 113.900
Inventory 66.500
Cost of goods sold 66.500

12/3
(853.000-113.900) = 739.100
Disc : 739.100 x 3% = 22.173

Cash 716.297
Sales Discount 22.173
Account Receivable 739.100
Inventory 22.173
Cost of goods sold 22.173