Question

O 3), AP The following transactions are for Alonzo Company. Journalize sales transactions. 1. On December 3, Alonzo Company sold $500,000 of merchandise to Arte Co., on account, terms 1/10, n/30. The cost of the merchandise sold was $330,000. 2. On December 8, Arte Co. was granted an allowance of $25,000 for merchandise purchased on December 3. 3. On December 13, Alonzo Company received the balance due from Arte Co. Instructions a. Prepare the journal entries to record these transactions on the books of Alonzo Company. Alonzo uses a perpetual inventory system. b. Assume that Alonzo Company received the balance due from Arte Co. on January 2 of the following

Answer 1

Answer: See explanation

Explanation:

a. Prepare the journal entries to record these transactions on the books of Alonzo Company. Alonzo uses a perpetual inventory system.

Dec 3

Dr Account receivable $500,000

Cr Sales $500,000

Dr Cost of goods sold $330,000

Cr Merchandise inventory $330,000

Dec 8

Dr Sales return and allowance $25000

Cr Account receivable $25000

Dec 13

Dr Cash $470250

Dr Sales discount $4750

Cr Account receivable $475000

b. Assume that Alonzo Company received the balance due from Arte Co. on January 2 of the following

Jan 2

Dr Cash $475000

Cr Account receivable $475000