Question

counting for Merchandising Businesses + PE 6-3B Sales transactions OBJ. 2 Journalize the following merchandise transactions: a. Sold merchandise on account, $92,500 with terms 1/10, 1/30. The cost of the mer- chandise sold was $55,500. b. Received payment less the discount. c. Issued a credit memo for returned merchandise that was sold for $10.400 terms n/30. The cost of the merchandise returned was $6,500. PE 6-4A Freight terms OBJ. 2 Determine the amount to be paid in full settlement of each of two invoices, (a) and (b). assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Freight Returns and Merchandise Paid by Seller Freight Terms Allowances $ 90,000 $1,000 FOB shipping point, 1/10, n/30 $15,000 110,000 1,575 FOB destination, 2/10,n/30 8,500 297 PE 6-4B Freight terms OBJ. 2 Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Freight Returns and Merchandise Paid by Seller Freight Terms $36,000 $800 FOB destination, 1/10, n/30 $4.000 44,900 375 FOB shipping point, 2/10, 1/30 2.400 Allowances 299 PE 6-5A Transactions for buyer and seller OBJ. 2 Sather Co. sold merchandise to Boone Co. on account, $31,800, terms 2/15, 1/30. The cost of the merchandise sold is $19,000. Journalize the entries for Sather Co. and Boone Co. for the sale, purchase, and payment of amount due. Assume all discounts are taken. 299 PE 6-5B Transactions for buyer and seller OBJ. 2 Shore Co. sold merchandise to Blue Star Co. on account, $112,000, terms FOB shipping point 2/10, 1/30. The cost of the merchandise sold is $67,200. Shore Co. paid freight of $1,800. Journalize the entries for Shore Co. and Blue Star Co. for the sale, purchase, and payment of amount due. Assume all discounts are taken. 301 PE 6-6A Inventory shrinkage

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.
6-3B
Event	Account	Debit	Credit
a	Accounts Receivable	$      92,500
	Sales		$     92,500
	Cost of Goods Sold	$      55,500
	Merchandise Inventory		$     55,500
b	Cash	$      91,575
	Sales Discount ($92,500*1%)	$            925
	Accounts Receivable		$     92,500
c	Sales return and allowance	$      10,400
	Accounts Receivable		$     10,400
	Merchandise Inventory	$        6,500
	Cost of goods sold		$       6,500
6-4A
a	FOB Shipping Point, hence freight to be paid by Buyer.
	Sale		$     90,000
	Less: Return		$ (15,000)
	Net Sale		$     75,000
	Less: 1% Discount		$        (750)
			$     74,250
	Add: Freight paid by Seller on behalf of Buyer (FOB Shipping)		$       1,000
	Amount to be paid		$     75,250
b	FOB Destination, freight is responsibility of Seller
	Sale		$ 110,000
	Less: Return		$     (8,500)
	Net Sale		$ 101,500
	Less: 2% Discount		$     (2,030)
			$     99,470
	Add: Freight paid by Seller (FOB Destination)-Responsibility of Seller		$              -
	Amount to be paid		$     99,470
6-4B
a	FOB Destination, freight is responsibility of Seller
	Sale		$     36,000
	Less: Return		$     (4,000)
	Net Sale		$     32,000
	Less: 1% Discount		$        (320)
			$     31,680
	Add: Freight paid by Seller (FOB Destination)-Responsibility of Seller		$              -
	Amount to be paid		$     31,680
b	FOB Shipping Point, hence freight to be paid by Buyer.
	Sale		$     44,900
	Less: Return		$     (2,400)
	Net Sale		$     42,500
	Less: 2% Discount		$        (850)
			$     41,650
	Add: Freight paid by Seller on behalf of Buyer (FOB Shipping)		$           375
	Amount to be paid		$     42,025
6-5A	Seller-Sather
Event	Account	Debit	Credit
a	Accounts Receivable	$      31,800
	Sales		$     31,800
	Cost of Goods Sold	$      19,000
	Merchandise Inventory		$     19,000
b	Cash	$      31,164
	Sales Discount ($31,800*2%)	$            636
	Accounts Receivable		$     31,800
	Buyer-Boone
Event	Account	Debit	Credit
a	Merchandise Inventory	$      31,800
	Accounts Payable		$     31,800
b	Accounts Payable	$      31,800
	Merchandise Inventory		$           636
	Cash		$     31,164
6-5B	Seller-Shore
Event	Account	Debit	Credit
a	Accounts Receivable	$   112,000
	Sales		$ 112,000
	Cost of Goods Sold	$      67,200
	Merchandise Inventory		$     67,200
b	Accounts Receivable	$        1,800
	Cash		$       1,800
	(To record freight being paid on behalf of buyer-FOB Shipping point)
c	Cash	$   111,560
	Sales Discount ($112,000*2%)	$        2,240
	Accounts Receivable ($112,000+$1,800)		$ 113,800
	Buyer-Blue Star
Event	Account	Debit	Credit
a	Merchandise Inventory	$   112,000
	Accounts Payable		$ 112,000
b	Merchandise Inventory	$        1,800
	Accounts Payable		$       1,800
	(To record freight expense paid by seller)
c	Accounts Payable	$   113,800
	Merchandise Inventory (Discount)		$       2,240
	Cash		$ 111,560