Question

On October 5, Windsor Company buys merchandise on account from Flint Company. The selling price of the goods is $4,890, and the cost to Flint is $3,490. On October 8, Windsor Company returns defective goods with a selling price of $670 and a fair value of $140. Record the transactions on the books of Flint. (Credit account titles are automatically indented when amount is entered Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the Part amounts.) Date Account Titles and Explanation Debit Credit o record credit sales (To record cost of goods sold on account) (To record credit granted for receipt of returned goods) /Tn rarn㎡ fair value nf nnnte raharnad)

Answer 1

Explanation:

The journal entries are as follows

1. Account receivable A/c Dr $4,890

          To Sales revenue $4,890

(Being the goods are sold on credit)

2. Cost of goods sold $3,490

             To Inventory $3,490

(Being the cost of goods is recorded)

3. Sales return and allowance A/c Dr $670

               To Accounts receivable $670

(Being sales return is recorded)

4. Inventory $140

           To Cost of goods sold $140

(Being sales return is recorded)