Accounting help

Based on the information below, journalize the entries during

March

20XX

for the

Rowen Company

and the Mosquera Company. Both use a perpetual inventory system

 

for $

, terms 2/10, net 30.

 

   

  

  11

worth of the $800,000 merchandise received. The seller’s cost is $

.

 

     

 

14

 

 

  

  

Mar   5

Rowen sells Mosquera on account merchandise costing $

580,000

800,000

Mosquera returns as defective $

120,000

90,000

Mosquera pays within the discount period.  

General Journal

Date

Description

Debit

Credit

ENTRIES FOR ROWEN COMPANY:

                               

                                                        

  

ENTRIES FOR MOSQUERA  COMPANY:

  

                                                        

  

Prepare an Income Statement through

Gross Profit

for Rowen.

                                    

 General Journal  DateDescriptionDebitCredit

  ENTRIES FOR ROWEN COMPANY:  20XX    March5

800,000 

  

 800,000

     

 5

580,000 

  

 580,000

     

 11

120,000 

  Accounts Receivable 120,000

     

 11Merchandise Inventory90,000   Cost of Goods Sold 90,000

     

 14

 

  

 

  Accounts Receivable 

     

  

  

20XX    

March5Merchandise Inventory800,000   

 800,000

     

 11Accounts Payable120,000   Merchandise Inventory 120,000

     

 14Accounts Payable680,000   Cash 666,400  Merchandise Inventory 13,600

Accounts Receivable

Sales

Cost of Goods Sold

Merchandise Inventory

Sales Returns and Allowances

Cash

666,400

Sales Discounts

13,600

680,000

ENTRIES FOR MOSQUERA COMPANY:

Accounts Payable

 Prepare an Income Statement through Gross Profit for Rowen.  

Rowen Company

 

Sales 

 

13,600

 666,400

   

Cost of Goods Sold 

   

Gross Profit 

   

Partial Income Statement

For the Period Ending March 30, 20XX

$ 800,000

       Less: Sales Returns and Allowances

$ 120,000

                 Sales Discounts

133,600

Net Sales

490,000

$ 176,400

 

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