On February 6, Markowitz Company sold $105,000 of merchandise to the Lyman Company, terms 2/10, net /30. The cost of the merchandise sold was $70,000. On February 8, the Lyman Company returned $14,000 of the merchandise purchased on February 6. The cost of the merchandise returned was $7,000. On February 16 Markowitz Company received the balance due from the Lyman Company.
Prepare the journal entries to record the above transactions on Markowitz Company’s books using a perpetual inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
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Date |
Account Titles and Explanation |
Debit |
Credit |
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Feb. 6 |
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(To record credit sale) |
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(To record cost of good sold) |
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Feb. 8 |
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(To record goods returned) |
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(To record cost of good returned) |
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Feb. 16 |
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