Prepare the journal entries to record these transactions on Bernadina Company’s
ID: 2427744 • Letter: P
Question
Prepare the journal entries to record these transactions on Bernadina Company’s books under a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
(a) On March 2, Horst Company sold $928,900 of merchandise to Bernadina Company, terms 3/10, n/30. The cost of the merchandise sold was $547,700. (b) On March 6, Bernadina Company returned $106,100 of the merchandise purchased on March 2. The cost of the merchandise returned was $63,770. (c) On March 12, Horst Company received the balance due from Bernadina Company.Explanation / Answer
Journal entries to record the following transactions for Bernadina Company under perpetual inventory system is as shown below:
(a)
Date
Particulars
L.F
Amount ($)
Amount ($)
March 2
Merchandise Inventory
928,900
Accounts Payable-Horst Company
928,900
(For goods costing $547,700 purchased on terms 3/10, n/30)
(b)
Date
Particulars
L.F
Amount ($)
Amount ($)
March 6
Accounts Payable-Horst Company
106,100
Merchandise Inventory
106,100
(For goods costing $63,770 purchase return on terms 3/10, n/30)
(c )
Date
Particulars
L.F
Amount ($)
Amount ($)
March 12
Accounts payable-Horst Company
822,800
Merchandise Inventory (1,500*2%)
24,684
Cash
798,116
(For cash paid for purchase)
Date
Particulars
L.F
Amount ($)
Amount ($)
March 2
Merchandise Inventory
928,900
Accounts Payable-Horst Company
928,900
(For goods costing $547,700 purchased on terms 3/10, n/30)