Prepare the journal entries to record the following transactions on Borst Companys books using a perpetual inventory
Question:
Prepare the journal entries to record the following transactions on Borst Company’s books using a perpetual inventory system.
a. On March 2, Borst Company sold $800,000 of merchandise to McLeena Company on account, terms 2/10, n/30. The cost of the merchandise sold was $540,000.
b. On March 6, McLeena Company returned $140,000 of the merchandise purchased on March 2. The cost of the merchandise returned was $94,000.
c. On March 12, Borst Company received the balance due from McLeena Company.
Step by Step Answer:
a March 2 b c 2 6 6 12 Accounts Receivable Sales Revenue Cost o...View the full answer
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119493631
9th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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