On June 10, Sheridan Company purchased $7,700 of merchandise from Crane Company, terms 3/10, n/30. Sheridan Company pays the freight costs of $430 on June 11. Goods totaling $800 are returned to Crane Company for credit on June 12. On June 19, Sheridan Company pays Crane Company in full, less the purchase discount. Both companies use a perpetual inventory system. Prepare separate entries for each transaction on the books of Sheridan Company.

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Business

Mallory Gutierrez

20 July, 08:34

On June 10, Sheridan Company purchased $7,700 of merchandise from Crane Company, terms 3/10, n/30. Sheridan Company pays the freight costs of $430 on June 11. Goods totaling $800 are returned to Crane Company for credit on June 12. On June 19, Sheridan Company pays Crane Company in full, less the purchase discount. Both companies use a perpetual inventory system. Prepare separate entries for each transaction on the books of Sheridan Company.

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Lola Gibson · Answer 1

Sheridan Company journal entries:

June 10

Dr Merchandise inventory 7,700 Cr Accounts payable 7,700

June 11

Dr Merchandise inventory 430 Cr Cash 430

June 12

Dr Accounts payable 800 Cr Merchandise inventory 800

June 19

Dr Accounts payable 6,900 Cr Cash 6,693 Cr Merchandise inventory 207