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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

Mar 5	Rowen sells Mosquera on account merchandise costing $580,000 for $800,000, terms 2/10, net 30.
11	Mosquera returns as defective $120,000 worth of the $800,000 merchandise received. The seller's cost is $90,000.
14	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
Date		Description	Debit	Credit
		ENTRIES FOR ROWEN COMPANY:
20XX
March	5	Accounts Receivable	800,000
		Sales		800,000

	5	Cost of Goods Sold	580,000
		Merchandise Inventory		580,000

	11	Sales Returns and Allowances	120,000
		Accounts Receivable		120,000

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

	14	Cash	666,400
		Sales Discounts	13,600
		Accounts Receivable		680,000

		ENTRIES FOR MOSQUERA COMPANY:
20XX
March	5	Merchandise Inventory	800,000
		Accounts Payable		800,000

	11	Accounts Payable	120,000
		Merchandise Inventory		120,000

	14	Accounts Payable	680,000
		Cash		666,400
		Merchandise Inventory		13,600

Prepare an Income Statement through Gross Profit for Rowen.

Rowen Company
Partial Income Statement
For the Period Ending March 30, 20XX

Sales		$ 800,000
Less: Sales Returns and Allowances	$ 120,000
Sales Discounts	13,600	133,600
Net Sales		666,400

Cost of Goods Sold		490,000

Gross Profit		$ 176,400

13 years ago
26.03.2013
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