On October 5, Pronghorn Corporation buys merchandise for resale on account from Culver Corporation. The selling price of the goods is $ 5,210, and the cost to Culver Company is $ 3,250. On October 8, Pronghorn returns defective goods with a selling price of $ 670 and a cost of $ 250. It is anticipated that these goods can be resold at a discount at some point in the future for at least their cost of $ 250, if not more. Both companies use a perpetual inventory system. (a) Record the transactions on the books of Pronghorn 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 0 for the amounts.)

On October 5, Pronghorn Corporation buys merchandise for resale on account from Culver Corporation. The selling price of the goods is $ 5,210, and the cost to Culver Company is $ 3,250. On October 8, Pronghorn returns defective goods with a selling price of $ 670 and a cost of $ 250. It is anticipated that these goods can be resold at a discount at some point in the future for at least their cost of $ 250, if not more. Both companies use a perpetual inventory system. (a) Record the transactions on the books of Pronghorn 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 0 for the amounts.)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 6MC

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(a)

Record the transactions on the books of Pronghorn 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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Oct. 5

8

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