On January 4 Crossway Co. sold merchandise to Mallard Company for $25,500, terms 2/10, n/60; shipping...

3.6 Ratings (304 Votes)

Crossway Co.
Journal
Date	Account Titles	Debit $	Credit $
Jan 4	Accounts receivable Dr	25500
	Sales Cr		25500

Jan 6	Freight charges Dr	500
	Cash Cr		500

Jan 8	Sales return Dr	2500
	Accounts receivable Cr		2500

Jan 8	Inventory Dr	1400
	Cost of goods sold Cr		1400

Jan 9	Cash Dr ((25500-2500)*98%)	22540
	Discount allowed Dr ((25500-2500)*2%)	460
	Accounts receivable Cr (25500-2500)		23000

Mallard Company
Journal
Date	Account Titles	Debit $	Credit $
Jan 4	Purchase Dr	25500
	Accounts payable Cr		25500

Jan 6	No entry required (because it is an expenses of Crossway Co. and not related to Mallard Co.)

Jan 8	Accounts payable Dr	2500
	Purchase Returns Cr		2500

Jan 9	Accounts payable Dr (25500-2500)	23000
	Cash Dr ((25500-2500)*98%)		22540
	Discount received Dr ((25500-2500)*2%)		460

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