On June 10, Sheridan Company purchased $7,850 of merchandise on account from Pronghorn Company, FOB shipping...

Transcribed Image Text:

On June 10, Sheridan Company purchased $7,850 of merchandise on account from Pronghorn Company, FOB shipping point, terms 2/10, n/30. Sheridan Company pays the freight costs of $490 on June 11. Goods totaling $650 are returned to Pronghorn for credit on June 12. On June 19, Sheridan Company pays Pronghorn Company in full, less the purchase discount. Both companies use a perpetual inventory system. (a) (b) Prepare separate entries for each transaction for Pronghorn Company. The merchandise purchased by Sheridan Company on June 10 cost Pronghorn $4,600, and the goods returned cost Pronghorn $262. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date June 10 Account Titles and Explanation Debit Credit On June 10, Sheridan Company purchased $7,850 of merchandise on account from Pronghorn Company, FOB shipping point, terms 2/10, n/30. Sheridan Company pays the freight costs of $490 on June 11. Goods totaling $650 are returned to Pronghorn for credit on June 12. On June 19, Sheridan Company pays Pronghorn Company in full, less the purchase discount. Both companies use a perpetual inventory system. (a) (b) Prepare separate entries for each transaction for Pronghorn Company. The merchandise purchased by Sheridan Company on June 10 cost Pronghorn $4,600, and the goods returned cost Pronghorn $262. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date June 10 Account Titles and Explanation Debit Credit

Answer rating: 100% (QA)

Initial Purchase Sheridan Company purchases merchandise on account from Pronghorn Company Purchase a... View the full answer