Question

On January 4 Crossway Co. sold merchandise to Mallard Company for $25,500, terms 2/10, n/60; shipping terms were FOB Destination. The merchandise had a cost of $14,000 to Crossway Co.

2. On January 6 Crossway paid freight costs of $500.

3. On January 8 Mallard returned $2,500 of the merchandise purchased on January 4 to Crossway and received credit. The merchandise had a cost of $1,400 to Crossway.

4. On January 9 Mallard paid the amount due to Crossway.
--Record the necessary journal entries for Crossway Co. Omit explanations.

1. On January 4 Crossway Co. sold merchandise to Mallard Company for $25,500, terms 2/10, n/60; shipping terms were FOB Destination. The merchandise had a cost of $14,000 to Crossway Co.

2. On January 6 Crossway paid freight costs of $500.

3. On January 8 Mallard returned $2,500 of the merchandise purchased on January 4 to Crossway and received credit. The merchandise had a cost of $1,400 to Crossway.

4. On January 9 Mallard paid the amount due to Crossway.
--Record the necessary journal entries for Mallard Company. Omit explanation

Answer 1

Crossway Co.
Journal
Date	Account Titles	Debit $	Credit $
Jan 4	Accounts receivable Dr	25500
	Sales Cr		25500
Jan 6	Freight charges Dr	500
	Cash Cr		500
Jan 8	Sales return Dr	2500
	Accounts receivable Cr		2500
Jan 8	Inventory Dr	1400
	Cost of goods sold Cr		1400
Jan 9	Cash Dr ((25500-2500)*98%)	22540
	Discount allowed Dr ((25500-2500)*2%)	460
	Accounts receivable Cr (25500-2500)		23000
Mallard Company
Journal
Date	Account Titles	Debit $	Credit $
Jan 4	Purchase Dr	25500
	Accounts payable Cr		25500
Jan 6	No entry required (because it is an expenses of Crossway Co. and not related to Mallard Co.)
Jan 8	Accounts payable Dr	2500
	Purchase Returns Cr		2500
Jan 9	Accounts payable Dr (25500-2500)	23000
	Cash Dr ((25500-2500)*98%)		22540
	Discount received Dr ((25500-2500)*2%)		460
Note : As specified in the question, explanations are not provided