Ask Question
17 November, 09:24

Prepare separate entries for each transaction for Sunland Company. The merchandise purchased by Splish Brothers on June 10 cost Sunland $3,180, and the goods returned cost Sunland $210. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

+2
Answers (1)
  1. 17 November, 12:19
    0
    For the sales on June 10

    Debit Cost of Goods sold $3,180

    Credit Inventory account $3,180

    For the goods returned,

    Debit Inventory account $210

    Credit Cost of goods sold $210

    Explanation:

    When a sale is made from the inventory items at hand, the transaction has a dual effect. These are;

    the recognition of revenue. this involves a Debit to cash or accounts receivable and a credit to sales the derecognition of inventory. this involves a debit to cost of goods sold and a credit to inventory.

    When returned are made, the reversal of these entries are posted.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Prepare separate entries for each transaction for Sunland Company. The merchandise purchased by Splish Brothers on June 10 cost Sunland ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers