On october 5, narveson company buys merchandise on account from rossi company. the selling price of the goods is $6,380, and the cost to rossi company is $3,310. on october 8, narveson returns defective goods with a selling price of $740 and a scrap value of $410.
record the transactions of narveson company, assuming a perpetual approach. (credit account titles are automatically indented when amount is entered. do not indent manually.)
date
account titles and explanation
debit
credit
oct. 5
on october 5, narveson company buys merchandise on
on october 5, narveson company buys merchandise on
on october 5, narveson company buys merchandise on
on october 5, narveson company buys merchandise on
on october 5, narveson company buys merchandise on
on october 5, narveson company buys merchandise on
oct. 8
on october 5, narveson company buys merchandise on
on october 5, narveson company buys merchandise on
on october 5, narveson company buys merchandise on
on october 5, narveson company buys merchandise on
on october 5, narveson company buys merchandise on
Explanation:
The journal entries are as follows
On the books of Narveson Company
On October 5
Merchandise Inventory A/c $6,380
To Accounts payable A/c $6,380
(Being inventory purchased on credit)
On October 8
Accounts payable A/c Dr $740
To Merchandise Inventory A/c $740
On the books of Rossi Company
On October 5
Account receivable A/c Dr $6,380
To Sales $6,380
(Being the goods are sold on credit)
Cost of goods sold A/c Dr $3,310
To Merchandise Inventory A/c $3,310
(Being goods are sold at cost)
On October 8
Sales return and allowance A/c Dr $740
To Accounts receivable $740
(Being sales return is recorded)
Merchandise Inventory A/c $410
To Cost of goods sold A/c Dr $410
(Being sales return is recorded)