Accounting Help 52

Based on the information below, journalize the entries during March 20XX for the Rowen Company and the Mosquera Company. Both use a perpetual inventory system

 

Mar   5

Rowen sells Mosquera on account merchandise costing $580,000 for $800,000, terms 2/10, net 30.

 

       11

Mosquera returns as defective $120,000 worth of the $800,000 merchandise received. The seller’s cost is $90,000.

 

       14

Mosquera pays within the discount period.  

 

 

General Journal

 

 

Date

Description

Debit

Credit

 

 

ENTRIES FOR ROWEN COMPANY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ENTRIES FOR MOSQUERA  COMPANY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      

 

 

Prepare an Income Statement through Gross Profit for Rowen.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Journal

 

 

Date

Description

Debit

Credit

 

 

ENTRIES FOR ROWEN COMPANY:

 

 

20XX

 

 

 

 

March

5

Accounts Receivable

800,000

 

 

 

Sales

 

800,000

 

 

 

 

 

 

5

Cost of Goods Sold

580,000

 

 

 

Merchandise Inventory

 

580,000

 

 

 

 

 

 

11

Sales Returns and Allowances

120,000

 

 

 

Accounts Receivable

 

120,000

 

 

 

 

 

 

11

Merchandise Inventory

90,000

 

 

 

Cost of Goods Sold

 

90,000

 

 

 

 

 

 

14

Cash

666,400

 

 

 

Sales Discounts

13,600

 

 

 

Accounts Receivable

 

680,000

 

 

 

 

 

 

 

ENTRIES FOR MOSQUERA COMPANY:

 

 

20XX

 

 

 

 

March

5

Merchandise Inventory

800,000

 

 

 

Accounts Payable

 

800,000

 

 

 

 

 

 

11

Accounts Payable

120,000

 

 

 

Merchandise Inventory

 

120,000

 

 

 

 

 

 

14

Accounts Payable

680,000

 

 

 

Cash

 

666,400

 

 

Merchandise Inventory

 

13,600

 

Prepare an Income Statement through Gross Profit for Rowen.

 

Rowen Company

Partial Income Statement

For the Period Ending March 30, 20XX

 

Sales

 

$ 800,000

       Less: Sales Returns and Allowances

$ 120,000

 

                 Sales Discounts

13,600

133,600

Net Sales

 

666,400

 

 

 

Cost of Goods Sold

 

490,000

 

 

 

Gross Profit

 

$ 176,400

 

 

 

 

Answer

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