Question

On June 10, Sheridan Company purchased $6,600 of merchandise from Crane Company, terms 4/10, n/30. Sheridan Company pays the freight costs of $350 on June 11. Goods totaling $300 are returned to Crane Company for credit on June 12. On June 19, Sheridan Company pays Crane Company in full, less the purchase discount. Both companies use a perpetual inventory system.

 Prepare separate entries for each transaction on the books of Sheridan Company. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Prepare separate entries for each transaction for Crane Company. The merchandise purchased by Sheridan Company on June 10 cost Crane Company $3,050, and the goods returned cost Crane Company $210. 

Answer 1

June 10	Inventory	6600
	Accounts Payable		6600
June 11	Inventory	350
	Cash		350
June 12	Accounts Payable	300
	Inventory		300
June 19	Accounts Payable	6300
	Inventory		252	=6300*4%
	Cash		6048
2
June 10	Accounts Receivable	6600
	Sales revenue		6600
June 10	Cost of goods sold	3050
	Inventory		3050
June 11	NO entry	0
	NO entry		0
June 12	Sales Return and allowances	300
	Accounts Receivable		300
June 12	Inventory	210
	Cost of goods sold		210
June 19	Cash	6048
	Sales Discount	252		=6300*4%
	Accounts Receivable		6300