Question

Sales and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System

The following selected transactions were completed during April between Swan Company and Bird Company. Both companies use the net method under a perpetual inventory system.

Apr. 2.	Swan Company sold merchandise on account to Bird Company, $58,300, terms FOB shipping point, 2/10, n/30. Swan paid freight of $1,725, which was added to the invoice. The cost of the goods sold was $34,220.
8.	Swan Company sold merchandise on account to Bird Company, $51,600, terms FOB destination, 1/15, n/eom. The cost of the goods sold was $29,770.
8.	Swan Company paid freight of $1,240 for delivery of merchandise sold to Bird Company on April 8.
12.	Bird Company paid Swan Company for purchase of April 2.
23.	Bird Company paid Swan Company for purchase of April 8.
24.	Swan Company sold merchandise on account to Bird Company, $59,550, terms FOB shipping point, n/eom. The cost of the goods sold was $41,080.
25.	Swan Company paid Bird Company a cash refund of $2,450 for damaged merchandise in the April 8 sale. Bird Company kept the merchandise.
26.	Bird Company paid freight of $810 on April 24 purchase from Swan Company.
30.	Bird Company paid Swan Company on account for purchase of April 24.

Required:

1. Journalize the April transactions for Swan Company (the seller). If an amount box does not require an entry, leave it blank.

Date	Account	Debit	Credit
Apr. 2	Accounts Receivable-Bird Company
	Sales

Date	Account	Debit	Credit
Apr. 2	Accounts Receivable-Bird Company
	Cash

Date	Account	Debit	Credit
Apr. 2	Cost of Goods Sold
	Inventory

Date	Account	Debit	Credit
Apr. 8	Accounts Receivable-Bird Company
	Sales

Date	Account	Debit	Credit
Apr. 8	Cost of Goods Sold
	Inventory

Date	Account	Debit	Credit
Apr. 8	Delivery Expense
	Cash

Date	Account	Debit	Credit
Apr. 12	Cash
	Accounts Receivable-Bird Company

Date	Account	Debit	Credit
Apr. 23	Cash
	Accounts Receivable-Bird Company

Date	Account	Debit	Credit
Apr. 24	Accounts Receivable-Bird Company
	Sales

Date	Account	Debit	Credit
Apr. 24	Cost of Goods Sold
	Inventory

Date	Account	Debit	Credit
Apr. 25	Customer Refunds Payable
	Cash

Date	Account	Debit	Credit
Apr. 30	Cash
	Accounts Receivable-Bird Company

2. Journalize the April transactions for Bird Company (the buyer). If an amount box does not require an entry, leave it blank.

Date	Account	Debit	Credit
Apr. 2	Inventory
	Accounts Payable-Swan Company

Date	Account	Debit	Credit
Apr. 8	Inventory
	Accounts Payable-Swan Company

Date	Account	Debit	Credit
Apr. 12	Accounts Payable-Swan Company
	Cash

Date	Account	Debit	Credit
Apr. 23	Accounts Payable-Swan Company
	Cash

Date	Account	Debit	Credit
Apr. 24	Inventory
	Accounts Payable-Swan Company

Date	Account	Debit	Credit
Apr. 25	Cash
	Inventory

Date	Account	Debit	Credit
Apr. 26	Inventory
	Cash

Date	Account	Debit	Credit
Apr. 30	Accounts Payable-Swan Company
	Cash

Answer 1

XIA 5 2020-09(3) SEP.xlsx - Microsoft Excel ? X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW DEVELOPER Sign in H27 f A D E F G K L 2 3 Credit Credit B C Journal entries (the seller) Date General Journal Apr. 2 Accounts Receivable-Bird Company Sales (To record sales revenue on account.) (58300-(58300*2%)) Debit 57,134 Date Apr. 2 H Journal entries (the buyer) General Journal Inventory Accounts Payable-Swan Company (To record purchased of inventory on account) (57134+1725) Debit 58,859 4 5 57,134 58,859 6 7 Apr. 2 1,725 Apr. 8 51,084 Accounts Receivable-Bird Company Cash (To record feight cost paid behalf on buyer) 1,725 9 10 Inventory Accounts Payable-Swan Company (To record purchased of inventory on account) 51,084 11 12 34,220 Apr. 12 Accounts Payable-Swan Company 58,859 13 Apr.2 Cost of Goods Sold Inventory (To record cost of goods sold.) 34,220 Cash 58,859 14 (To record cash paid to supplier.) 15 16 51,084 Apr. 23 51,084 17 Apr. 8 Accounts Receivable-Bird Company Sales (To record sales revenue on account.) (51600-(51600*1%)) 51,084 Accounts Payable-Swan Company Cash (To record cash paid to supplier.) 51,084 18 19 20 Apr. 8 29,770 59,550 21 Cost of Goods Sold Inventory (To record cost of goods sold.) 29,770 Apr. 24 Inventory Accounts Payable-Swan Company (To record purchased of inventory on account) 59,550 22 23 24 Apr. 8 1,240 2,450 25 Delivery Expense Cash (To record delivery expense.) 1,240 Apr. 25 Cash Inventory (To record cash refund received.) 2,450 26 27 28 58,859 29 Apr. 12 Cash Accounts Receivable-Bird Company Sheet30 Sheet31 Sheet32 Sheet33 Apr. 26 Inventory Cash Sheet37 Sheet38 + 58.859 Sheet36 Activate Windows Go to Settings to activate Windows Sheet34 Sheet35 READY 3 1 + 100% i Search the web and Windows O A ENG US 02:21 26-09-20

XIA 5 2020-09(3) SEP.xlsx - Microsoft Excel ? X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW DEVELOPER Sign in H24 X f Cash A с E F J K L B Apr. 8 D 1,240 1 2,450 24 Apr. 25 H Cash Inventory (To record cash refund received.) Delivery Expense Cash (To record delivery expense.) 25 1,240 2,450 26 27 28 58,859 Apr. 26 810 29 Apr. 12 Cash Accounts Receivable-Bird Company (To record cash received from customer.) (57134+1725) 58,859 Inventory Cash (To record fright paid for inventory purchase) 810 30 31 32 51,084 59,550 Apr. 23 Cash Accounts Receivable-Bird Company (To record cash received from customer.) 51,084 33 34 35 36 Apr. 30 Accounts Payable-Swan Company Cash (To record cash paid to supplier.) 59,550 59,550 37 Apr. 24 Accounts Receivable-Bird Company Sales (To record sales revenue on account.) 59,550 38 39 40 Apr. 24 41,080 41 Apr. 24 Cost of Goods Sold Inventory (To record cost of goods sold.) 41,080 42 43 44 2,450 45 Apr. 25 Customer Refunds Payable Cash (To record cash refund.) 2,450 46 47 48 59,550 49 Apr. 30 Cash Accounts Receivable-Bird Company (To record cash received from customer.) 59,550 50 51 Activate Windows Go to Settings to activate Windows. Sheet30 Sheet31 Sheet32 Sheet33 Sheet34 Sheet35 Sheet36 Sheet37 Sheet38 + READY 3 1 + 100% i Search the web and Windows O ENG US 02:21 26-09-20