Crane Corporation uses the perpetual inventory system and began business on April 1. During the month Crane made inventory purchases of $84,200 on terms of 3/10, n/30. Crane returned $4,500 worth of goods during the month. Crane made all payment time to take advantage of the offered cash discounts during the month. Crane sold inventory on account with a value of $72,200 markup of 30% on the cost. These were the only inventory transactions during the month. Leo uses the gross method in account cash discounts. Prepare the journal entries related to:

Crane Corporation uses the perpetual inventory system and began business on April 1. During the month Crane made inventory purchases of $84,200 on terms of 3/10, n/30. Crane returned $4,500 worth of goods during the month. Crane made all payment time to take advantage of the offered cash discounts during the month. Crane sold inventory on account with a value of $72,200 markup of 30% on the cost. These were the only inventory transactions during the month. Leo uses the gross method in account cash discounts. Prepare the journal entries related to:

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Description: Crane Corporation uses the perpetual inventory system and began business on April 1. During the month Crane made inventorypurchases of $84,200 on terms of 3/10, n/30. Crane returned $4,500 worth of goods during the month. Crane made all payments int

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 67P

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Sandhill Corporation uses the perpetual inventory system and began business on April 1. During the month Sandhill made inventory purchases of $83,900 on terms of 2/10, n/30. Sandhill returned $4,200 worth of goods during the month. Sandhill made all payments in time to take advantage of the offered cash discounts during the month. Sandhill sold inventory on account with a value of $71,900 and a markup of 30% on the cost. These were the only inventory transactions during the month. Leo uses the gross method in accounting for cash discounts. Prepare the journal entries related to: (a) Prepare the journal entry related to the purchase of goods. (List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Save for Later (b) Debit Credit Attempts: 0 of 1 used Submit Answer