Prepare the journal entries to record the following transactions on Ivanhoe Company's books using a perpetual inventory system. (Ifno entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles areautomatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented inthe problem.)On March 2, Metlock Company sold $882,900 of merchandise to Ivanhoe Company on account, terms 3/10, n/30. The costof the merchandise sold was $527,900.(a)On March 6, Ivanhoe Company returned $107,600 of the merchandise purchased on March 2. The cost of themerchandise returned was $66,800.(b)(c)On March 12, Metlock Company received the balance due from Ivanhoe Company.DateAccount Titles and ExplanationDebitCreditMarch 2

The journal entries are prepared to keep the record of day to day transactions of the business.

On March 2, Metlock Company sold $882,900 of merchandise to Ivanhoe Company on account, terms 3/10, n/30. The cost of the merchandise sold was $527,900. (a) On March 6, Ivanhoe Company returned $107,600 of the merchandise purchased on March 2. The cost of the merchandise returned was $66,800. (b) (c) On March 12, Metlock Company received the balance due from Ivanhoe Company.

On March 2, Metlock Company sold $882,900 of merchandise to Ivanhoe Company on account, terms 3/10, n/30. The cost of the merchandise sold was $527,900. (a) On March 6, Ivanhoe Company returned $107,600 of the merchandise purchased on March 2. The cost of the merchandise returned was $66,800. (b) (c) On March 12, Metlock Company received the balance due from Ivanhoe Company.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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