Recording Sales Transactions
Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April:
On April Mathis purchased merchandise on account from Reece with credit terms of n The selling price of the merchandise was $ and the cost of the merchandise sold was $
On April Mathis paid freight charges of $ cash to have the goods delivered to its warehouse.
On April Mathis returned $ of the merchandise, which had originally cost Reece $
On April Mathis paid Reece the balance due.
Required:
Prepare the journal entries to record these transactions on Reeces books. Assume that Reece uses the net method to record sales on account. If an amount box does not require an entry, leave it blank.
April
Recorded sale on account
April
Recorded cost of merchandise sold
April
Recorded return of merchandise
April
Recorded cost of merchandise returned
April
Received customer payment within discount period
