Exercise 5-05 a-b (Part Level Submission) (Video)

Presented below are transactions related to Sandhill Company.

1.On December 3, Sandhill Company sold $593,100of merchandise on account to Indigo Co., terms2/10, n/30, FOB destination. Sandhill paid $350 for freight charges. The cost of the merchandise sold was $386,700.2.On December 8, Indigo Co. was granted an allowance of $28,400for merchandise purchased on December 3.3.On December 13, Sandhill Company received the balance due from Indigo Co.

(a)

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Prepare the journal entries to record these transactions on the books of Sandhill Company using a perpetual inventory system.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Date

Account Titles and Explanation

Debit

Credit

1.

Dec. 3

Dec. 8

Dec. 13

Jan. 2

(To record credit sale)

Dec. 3

Dec. 8

Dec. 13

Jan. 2

(To record cost of merchandise sold)

Dec. 3

Dec. 8

Dec. 13

Jan. 2

(To record freight charges)2.

Dec. 3

Dec. 8

Dec. 13

Jan. 2

3.

Dec. 3

Dec. 8

Dec. 13

Jan. 2

Exercise 5-05 a-b (Part Level Submission) (Video)

Presented below are transactions related to Sandhill Company.

1.On December 3, Sandhill Company sold $593,100of merchandise on account to Indigo Co., terms2/10, n/30, FOB destination. Sandhill paid $350 for freight charges. The cost of the merchandise sold was $386,700.2.On December 8, Indigo Co. was granted an allowance of $28,400for merchandise purchased on December 3.3.On December 13, Sandhill Company received the balance due from Indigo Co.

(a)

Your answer is partially correct.Try again.

Prepare the journal entries to record these transactions on the books of Sandhill Company using a perpetual inventory system.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Date

Account Titles and Explanation

Debit

Credit

1.

Dec. 3

Dec. 8

Dec. 13

Jan. 2

(To record credit sale)

Dec. 3

Dec. 8

Dec. 13

Jan. 2

(To record cost of merchandise sold)

Dec. 3

Dec. 8

Dec. 13

Jan. 2

(To record freight charges)2.

Dec. 3

Dec. 8

Dec. 13

Jan. 2

3.

Dec. 3

Dec. 8

Dec. 13

Jan. 2