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:
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 67P
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