On October 5, Blue Spruce Corporation buys merchandise for resale on account from Swifty Corporation. The selling price of the goods is $5.500, and the cost to Swifty Company is $2,910. Swifty Company expects a return rate of 15 %. On October 8, Blue Spruce returns defective goods with a selling price of $690 and a cost of $260. Swifty anticipates that these goods can be resold at a discount at some point in the future for at least their cost of $260, if not more. Both companies use a periodic inventory system. (a) Record the transactions on the books of Blue Spruce Corporation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem)
On October 5, Blue Spruce Corporation buys merchandise for resale on account from Swifty Corporation. The selling price of the goods is $5.500, and the cost to Swifty Company is $2,910. Swifty Company expects a return rate of 15 %. On October 8, Blue Spruce returns defective goods with a selling price of $690 and a cost of $260. Swifty anticipates that these goods can be resold at a discount at some point in the future for at least their cost of $260, if not more. Both companies use a periodic inventory system. (a) Record the transactions on the books of Blue Spruce Corporation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem)
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 9EB: Blue Barns sold 136 gallons of paint at $31 per gallon on July 6 to a customer with a cost of $19...
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