Question

Flint Corp. uses a periodic inventory system. The company had the following inventory transactions in April:

April	3		Purchased merchandise from Pina Colada Ltd. for $27,200, terms n/30, FOB shipping point.
	6		The appropriate company paid freight costs of $710 on the merchandise purchased on April 3.
	7		Purchased supplies on account for $4,940.
	8		Returned damaged merchandise to Pina Colada received a credit of $3,200. The merchandise was returned to inventory for future resale.
	30		Paid the amount due to Pina Colada in full.

1.		The cost of the merchandise sold on April 3 was $18,280. Pina Colada expected a return rate of 15%.
2.		The cost of the merchandise returned on April 8 was $2,400.
3.		Pina Colada uses a perpetual inventory system.

Record the above transactions in Flint’s books and in the books of Pina Colada. Both companies use the periodic inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Please do it for both!!!

Answer 1

JOURNAL ENTRIES IN THE BOOKS OF FLINT CORP.
Journal Entries
Sr. No.	Date	Account Title and explanation	Debit	Credit
1	April. 03	Merchandise inventory	$                    27,200
		Accont Payable		$                      27,200
2	April. 06	Merchandise inventory	$                          710
		Cash		$                            710
		(To Record the payment of Shipping Service Charges)
3	April. 07	Supplies	$                       4,940
		Account Payable		$                        4,940
4	April. 08	Account Payable	$                       3,200
		Merchandise inventory		$                        3,200
5	April. 30	Account Payable	$                    24,000
		Cash		$                      24,000
		(To record the payment in Full to Flounder)
JOURNAL ENTRIES IN THE BOOKS OF PINA COLADA
Journal Entries
Sr. No.	Date	Account Title	Debit	Credit
1	April. 03	Account Receivable	$                    27,200
		Sales Revenue		$                      27,200
2	April. 03	Cost of Goods Sold	$                    18,280
		Merchandise Inventory		$                      18,280
3	April. 08	Sales Return and Allowances	$                       3,200
		Account Receivable		$                        3,200
4	April. 08	Merchandise Inventory	$                       2,400
		Cost of Goods Sold		$                        2,400
5	April. 30	Cash	$                    24,000
		Account Receivable		$                      24,000
Note: No Entry is required for pina colada expected a return of 15%