Question

In: Accounting

Current Attempt in Progress This information relates to Skysong Co. 1. On April 5, purchased merchandise from Sheridan...

Current Attempt in Progress This information relates to Skysong Co. 1. On April 5, purchased merchandise from Sheridan Compan

Current Attempt in Progress

This information relates to Skysong Co.

1. On April 5, purchased merchandise from Sheridan Company for $27,600, terms 3/10,n/30.

2. On April 6, paid freight costs of $770 on merchandise purchased from Sheridan.

3. On April 7, purchased equipment on account for $34,300.

4. On April 8, returned $5,300 of April 5 merchandise to Sheridan Company.

5. On April 15, paid the amount due to Sheridan Company in full.

(a) Prepare the journal entries to record the transactions listed above on Skysong Co's books. Skysong Co. uses a perpetual inventory system.

(b) Assume that Skysong Co. paid the balance due to Sheridan Company on May 4 instead of April 15. Prepare the journal entry to record this payment.

Expert Solution

ANSWER

a) Journal entry

Date	General journal	Debit	Credit
Apr 5	Inventory	27600
	Account payable		27600

Apr 6	Inventory	770
	Cash		770

Apr 7	Equipment	34300
	Account payable		34300

Apr 8	Account payable	5300
	Inventory		5300

Apr 15	Account payable	22300
	Cash		21631
	Inventory		669

B) Journal entry

Date	General journal	debit	Credit
May 4	Account payable	22300
	Cash		22300

ekkarill92 answered 2 years ago

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