Prepare the journal entries to record the following transactions on Pharoah Company’s books using a perpetual inventory system.
(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.) (a) On March 2, Ivanhoe Company sold $886,400 of merchandise to Pharoah Company, terms 3/10, n/30. The cost of the merchandise sold was $524,800.
(b) On March 6, Pharoah Company returned $119,600 of the merchandise purchased on March 2. The cost of the merchandise returned was $64,700.
(c) On March 12, Ivanhoe Company received the balance due from Pharoah Company.
No.
Date
Account Titles and Explanation
Debit
Credit
(a)
choose a transaction date
March 2
enter an account title
Accounts receivables
enter a debit amount
886,400
enter a credit amount
enter an account title
sales revenue
enter a debit amount
enter a credit amount
886,400
(b)
choose a transaction date
March 6
enter an account title
Cost of Goods Sold
enter a debit amount
64,700
enter a credit amount
enter an account title
Inventory
enter a debit amount
enter a credit amount
64,700
(c)
choose a transaction date
March 12
enter an account title
Cash
enter a debit amount
enter a credit amount
enter an account title
Sales Discounts
enter a debit amount
enter a credit amount
enter an account title
Accounts Receivable
