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Concord Ltd. and Riverbed Ltd. incurred the following merchandise transactions in June. June 10 Concord sold...

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Accounting

Concord Ltd. and Riverbed Ltd. incurred the followingmerchandise transactions in June. June 10 Concord sold $4,400 ofmerchandise to Riverbed, terms 1/10, n/30, FOB shipping point. Themerchandise cost Duvall $2,640 when it was originally purchased. 11Freight costs of $190 were paid by the appropriate company. 12Concord received damaged goods returned by Riverbed for credit. Thegoods were originally sold for $700; the cost of the returnedmerchandise was $420. The merchandise was not returned toinventory. 19 Concord received full payment from Riverbed.

Prepare journal entries for each transaction in the books ofConcord Ltd., assuming (1) a perpetual inventory system is used,and (2) a periodic inventory system is used.

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Perpetual inventory system

Date account and explanation debit credit
June 10 Account receivable 4400
Sales revenue 4400
(To record sales)
Cost of goods sold 2640
Merchandise inventory 2640
(To record cost of goods sold)
June 12 Sales return and allowance 700
Account receivable 700
(To record sales return)
Merchandise inventory 420
Cost of goods sold 420
(To record cost of goods returned)
June 19 Cash (3700*99%) 3663
Sales discount 37
Account receivable 3700
(To record amount received)

Periodic inventory system

Date account and explanation debit credit
June 10 Account receivable 4400
Sales revenue 4400
(To record sales)
June 12 Sales return and allowance 700
Account receivable 700
(To record sales return)
June 19 Cash (3700*99%) 3663
Sales discount 37
Account receivable 3700
(To record amount received)

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