Business, 03.06.2020 02:58 smelcher3900

The following transactions are for Kingbird Company.
1. On December 3, Kingbird Company sold $473,800 of merchandise to Blossom Co., on account, terms 2/10, n/30. The cost of the merchandise sold was $320,000.
2. On December 8, Blossom Co. was granted an allowance of $22,800 for merchandise purchased on December 3.
3. On December 13, Kingbird Company received the balance due from Blossom Co.
Required:
a. Prepare the journal entries to record these transactions on the books of Kingbird Company. Kingbird uses a perpetual inventory system.

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Answer from: eksdeeexe

a. The journal entries to record the transactions woule be the following:

To record the sales

3 dec Debit Credit

Account receivables $473,800

Sales $473,800

To record the cost of goods sold

cost of goods sold $320,000

Merchandise Inventory $320,000

To record the allowance

8 dec Debit Credit

Sales return and allowance $22,800

Accounts receivable $22,800

To record the cash received from the customer

13 dec Debit Credit

Cash $446,490

Sales discount $4,510

Accounts receivable $451,000

Explanation:

a. The journal entries to record the transactions woule be the following:

First we have to prepare the journal entry to record the sales and cost of goods sold according to the given data:

To record the sales

3 dec Debit Credit

Account receivables $473,800

Sales $473,800

To record the cost of goods sold

cost of goods sold $320,000

Merchandise Inventory $320,000

Next we have to Prepare the journal entry to record the allowance as follows:

To record the allowance

8 dec Debit Credit

Sales return and allowance $22,800

Accounts receivable $22,800

Finally we have to Prepare the journal entry to record the cash received from the customer as follows:

To record the cash received from the customer

13 dec Debit Credit

Cash $446,490

Sales discount $4,510

Accounts receivable $451,000

Cash=$451,000-$4,510=$446,490

Sales discount=$451,000*1%=$4,510

Accounts receivable=$473,800- $22,800=$451,000

Answer from: Quest

i think the answer would be b hope this

Answer from: Quest

answer; /// the correct answer is (shared); /// good luck

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The following transactions are for Kingbird Company.
1. On December 3, Kingbird Company sold...

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