Cornerstone Exercise $6-21$

Recording Sales Transactions

Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April:

On April $1,$ Mathis purchased merchandise on account from Reece with credit terms of $2/10,$ n$/30.$ The selling price of the merchandise was $$3,100,$ and the cost of the merchandise sold was $$2,225.$

On April $1,$ Mathis paid freight charges of $$250$ cash to have the goods delivered to its warehouse.

On April $8,$ Mathis returned $$800$ of the merchandise which had originally cost Reece $$500.$

On April $10,$ Mathis paid Reece the balance due.

Required:

Prepare the journal entries to record these transactions on Reece$$s books. Assume that Reece uses the net method to record sales on account. For a compound transaction, if an amount box does not require an entry, leave it blank.

April $1$

Inventory

Inventory

$-$ Select $-$

$($Recorded sale on account$)$

April $1$

Inventory

Inventory

$-$ Select $-$

$($Recorded cost of merchandise sold$)$

April $8$

$-$ Select $-$

$-$ Select $-$

$($Recorded return of merchandise$)$

April $8$

$-$ Select $-$

$-$ Select $-$

$($Recorded cost of merchandise returned$)$

April $10$

$-$ Select $-$

$-$ Select $-$

$($Received customer payment within discount period$)$