Hinds Company sold merchandise to Peter Company on account for $146,000 with credit terms of?/10.n/30. The cost of the merchandise sold was $86,140. During the discount period, Peter Company returned $6.000 of merchandise and paid its
account in full (minus the discount) by remitting $137.200 in cash. Both companies use a perpetual inventory system. Prepare
the journal entries that Hinds Company made to record:
(1
(2)
(3)
the sale of merchandise
the return of merchandise
the collection on account.
(Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
No.
Account Titles and Explanation
Debit
Credit
(1)
(To record credit sale)
(To record cost of good sold)
(2)