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Prepare the journal entries to record these transactions on Bernadina Company\'s

ID: 2501434 • 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.) On March 2, Horst Company sold $892,200 of merchandise to Bernadina Company, terms 2/10, n/30. The cost of the merchandise sold was $533,300. On March 6, Bernadina Company returned SI 17,400 of the merchandise purchased on March 2. The cost of the merchandise returned was 568,530. On March 12, Horst Company received the balance due from Bernadina Company.

Explanation / Answer

Date Particulars debit $ credit $ March, 2 Merchandize Inventory       892,200 Accounts Payable         892,200 March, 6 Accounts Payable       117,400 Merchandize Inventory         117,400 March, 12 Accounts Payable       774,800 Cash         759,304 Merchandize Inventory            15,496