Question

Current Auemet in Probtew Na0 tearhoe para the freidit costs of 5580 on June 11 Coods totaline 5400 are returned to Saraiota for credi en June 12 On dune. (a) acoust tities and enter ofor the amourte) Prepare separate entries for each transaction for Sarasota Company. The merchandise purchased by Ivanhoe on June 10 cost Sarasota $4,500, and the goods returned cost Sarasota $190. (List all debit entries before credit entries. Credit occount titles ore outomatically indented when amount is entered. Do not indent manualiy, If no entry is required, select "No Entry" for the occount fitles and enter O for the amounts.)

Answer 1

The journal entries reflect the credit sale of merchandise by Sarasota to Ivanhoe and the subsequent return of some of those goods. The appropriate accounts to debit and credit are Accounts Receivable, Sales Revenue, Cost of Goods Sold, Sales Returns and Allowances, and Inventory.

Step-by-step explanation:

The student's question involves preparing journal entries for transactions that occurred between Sarasota Company and Ivanhoe. Given the details, Sarasota sold merchandise to Ivanhoe on credit, and subsequently, Ivanhoe returned part of the merchandise for credit.

Transaction Journal Entries:

1. June 11 (Sale of merchandise on credit):
   Accounts Receivable 5,880
   Sales Revenue 5,880
2. June 11 (Cost of merchandise sold):
   Cost of Goods Sold 4,500
   Inventory 4,500
3. June 12 (Return of merchandise for credit):
   Sales Returns and Allowances 400
   Accounts Receivable 400
4. June 12 (Cost of returned merchandise):
   Inventory 190
   Cost of Goods Sold 190