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.)

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21 December, 20:17

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.)

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Will · Answer 1

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)