Journal Entries for Merchandise Transactions on Sellers and Buyers BooksPerpetual System
The following transactions occurred between the Decker Company and Mann Stores, Inc., during
March:
Mar. 8	Decker sold	$14,000	worth of merchandise with a cost of
	to Mann Stores with terms of 2/10, n/30
10	Mann Stores paid freight charges on the shipment from Decker Company					$500
12	Mann Stores returned		$2,000	of the merchandise at a		$1,600
17	Decker received full payment for the net amount due from the March 8 sale.
20	Mann Stores returned goods that had been billed originally at				$800	cost of
	Decker issued a check for		$784
Required
Prepare the necessary journal entries for (a) the books of Decker Company and (b) the books of Mann
Stores, Inc. Assume that both companies use the perpetual inventory system.
a.
DECKER COMPANY GENERAL JOURNAL
Date		Description		Debit	Credit
Mar.	8	Accounts Recievable		14,000
			Sales Revenue		14,000
		Sold goods to Mann Stores
		terms 2/10, n/30
	8	Cost of Goods Sold		96,000
			Inventory		96,000
		Cost of goods sold to Mann Stores
	12	Sales Returns + Allowances		2,000
			Accounts Recieveable		2,000
		Issued credit memo to Mann Stores for
		returned goods
	12	Inventory		1,600
			Cost of Goods Sold		1,600
		Cost of goods returned by Mann Stores
	17	Cash		11,760
		Sales Discount		240
			Accounts Receivable		12,000
		Received payment in full from Mann Stores
	20
		Paid Mann Stores for returned goods.
	20
		Cost of goods returned by Mann Stores
b.
MANN STORES GENERAL JOURNAL
Date		Description		Debit	Credit
Mar.	8
		Purchase goods from Decker Company
		terms 2/10, n/30
	10
		Paid freight charges on Decker shipment
	12
		Received credit memo for goods returned to
		Decker Company
	17
		Paid Decker Company in full
	20
		Received check for goods returned to
		Decker Company