Do It! Review 5-3 On October 5, Blossom Company buys merchandise on account from Sunland Company. The selling price of the goods is $6,670, and the cost to Sunland Company is $3,630. On October 8, Blossom Company returns defective goods with a selling price of $650 and a scrap value of $250. Record the transactions on the books of Sunland Company, assuming a perpetual approach. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Question

Jellybean

Business

7 July, 12:49

Do It! Review 5-3 On October 5, Blossom Company buys merchandise on account from Sunland Company. The selling price of the goods is $6,670, and the cost to Sunland Company is $3,630. On October 8, Blossom Company returns defective goods with a selling price of $650 and a scrap value of $250. Record the transactions on the books of Sunland Company, assuming a perpetual approach. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

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Reuben Calhoun · Answer 1

The journal entries in the books of Sunland Company are shown below:

On October 5:

Inventory A/c Dr $6,670

To Accounts payable A/c $6,670

(Being the goods are sold on credit)

On October 8:

Accounts payable A/c $650

To Inventory A/c $650

(Being returns defective goods are recorded)