Question

On June 10, Oriole Company purchased $ 7,500 of merchandise from Ivanhoe Company, terms  2/10, n/30. Oriole Company pays the freight costs of $ 360 on June 11. Goods totaling $ 300 are returned to Ivanhoe Company for credit on June 12. On June 19, Oriole Company pays Ivanhoe Company in full, less the purchase discount. Both companies use a perpetual inventory system.

Prepare separate entries for each transaction on the books of Oriole 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.)

Date	Account Titles and Explanation	Debit	Credit
Choose a transaction date  June 10June 11June 12June 19	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
Choose a transaction date  June 10June 11June 12June 19	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
Choose a transaction date  June 10June 11June 12June 19	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
Choose a transaction date  June 10June 11June 12June 19	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount

eTextbook and Media

List of Accounts

Prepare separate entries for each transaction for Ivanhoe Company. The merchandise purchased by Oriole Company on June 10 cost Ivanhoe Company $ 2,960, and the goods returned cost Ivanhoe Company $ 200. (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.)

Date	Account Titles and Explanation	Debit	Credit
Choose a transaction date  June 10June 11June 12June 19	Enter an account title to record credit sale	Enter a debit amount	Enter a credit amount
	Enter an account title to record credit sale	Enter a debit amount	Enter a credit amount
	(To record credit sale)
	Enter an account title to record cost of goods sold	Enter a debit amount	Enter a credit amount
	Enter an account title to record cost of goods sold	Enter a debit amount	Enter a credit amount
	(To record cost of goods sold)
Choose a transaction date  June 10June 11June 12June 19	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
Choose a transaction date  June 10June 11June 12June 19	Enter an account title to record credit sale	Enter a debit amount	Enter a credit amount
	Enter an account title to record credit sale	Enter a debit amount	Enter a credit amount
	(To record credit sale)
	Enter an account title to record cost of goods returned	Enter a debit amount	Enter a credit amount
	Enter an account title to record cost of goods returned	Enter a debit amount	Enter a credit amount
	(To record cost of goods returned)
June 19	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount

eTextbook and Media

Answer 1

Solution:

Journal Entries - Oriole Company
Date	Particulars	Debit	Credit
10-Jun	Merchandise inventory Dr	$7,500.00
	To Accounts payable		$7,500.00
	(To record merchandise purchased)
11-Jun	Merchandise inventory Dr	$360.00
	To Cash		$360.00
	(To record freight payment)
12-Jun	Accounts payable Dr	$300.00
	To Merchandise inventory		$300.00
	(To record goods returned)
19-Jun	Accounts payable Dr	$7,200.00
	To Cash ($7,200*98%)		$7,056.00
	To Merchandise inventory		$144.00
	(To record payment to supplier)

Journal Entries - Ivanhoe Company
Date	Particulars	Debit	Credit
10-Jun	Accounts receivables Dr	$7,500.00
	To Sales Revenue		$7,500.00
	(To record credit sales)
10-Jun	Cost of goods sold Dr	$2,960.00
	To Merchandise Inventory		$2,960.00
	(To record cost of goods sold)
11-Jun	No Entry
	No Entry
12-Jun	Sales returns and allowances Dr	$300.00
	To Accounts receivables		$300.00
	(To record sales return)
12-Jun	Merchandise inventory Dr	$200.00
	To Cost of goods sold		$200.00
	(To record cost of goods returned)
19-Jun	Cash Dr	$7,056.00
	Sales discount Dr	$144.00
	To Accounts receivables		$7,200.00
	(To record collection from customer)