In the books of Raymond | |||
General Journal | |||
Date | Journal | DR | CR |
01-Jan | Inventory | $ 5,000.00 | |
To Accounts Payable | $ 5,000.00 | ||
(Amount of merchandise inventory purchased on account from Geeslin Company term 2/10,n/30) | |||
08-Jan | Accounts Payable | $ 500.00 | |
To Inventory | $ 500.00 | ||
(Amount of purchases returned) | |||
10-Jan | Accounts Payable | $ 3,000.00 | |
To Cash=(3000*98%) | $ 2,940.00 | ||
To Merchandise Inventory($3000*2%) | $ 60.00 | ||
(Amount paid to Geeslin Company after considering 2% discount) | $ 640.00 | ||
30-Jan | Accounts Payable($5000-$500-$3000) | $ 1,500.00 | |
To Cash | $ 1,500.00 | ||
(Amount of balance paid after the discounting period,so no discount ) | |||
In the books of Geeslin | |||
General Journal | |||
Date | Journal | Amount (DR) | Amount (CR) |
01-Jan | Accounts Receivable($5000*98%) | $ 4,900.00 | |
To Sales | $ 4,900.00 | ||
(Sales on account to Raymond company net of sales method) | |||
01-Jan | Cost of goods sold | $ 500.00 | |
To Inventory | $ 500.00 | ||
(Cost of goods sold) | |||
08-Jan | Sales Return($500*98%) | $ 490.00 | |
To Accounts Receivable | $ 490.00 | ||
(Amount of sales return) | |||
08-Jan | Inventory | ||
To Cost of goods sold | |||
(Amount of Merchandise inventory returned by customer) | |||
10-Jan | Cash($3000*98%) | $ 2,940.00 | |
To Accounts Receivable | $ 2,940.00 | ||
(Amount of Cash received from Customer within discount period) | |||
30-Jan | Cash | $ 1,500.00 | |
To Accounts Receivable | $ 1,470.00 | ||
To Sales discount forfeited | $ 30.00 | ||
(Amount not paid by Raymond within discount period) |
Brief Exercise 6-34 Recording Purchase and Sales Transactions Raymond Company and Geeslin Company both use a...
Cornerstone Exercise 6-21 (Algorithmic) Recording Sales Transactions Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April: a. On April 1, Mathis Company purchased merchandise on account from Reece Company with credit terms of 2/10, n/30. The selling price of the merchandise was $3,500, and the cost of the merchandise sold was $2,450. b. On April 1, Mathis paid freight charges of $100 cash to have the goods delivered to its...
Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System The following selected transactions were completed during August between Summit Company and Beartooth Co.: Aug. 1. Summit Company sold merchandise on account to Beartooth Co., $45,300, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $26,780. 2. Summit Company paid freight of $1,130 for delivery of merchandise sold to Beartooth Co. on August 1. 5. Summit Company sold merchandise on account to Beartooth Co., $68,140,...
Cornerstone Exercise 6-21 (Algorithmic) Recording Sales Transactions Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April: a. On April 1, Mathis Company purchased merchandise on account from Reece Company with credit terms of 2/10, n/30. The selling price of the merchandise was $3,500, and the cost of the merchandise sold was $2,450. b. On April 1, Mathis paid freight charges of $100 cash to have the goods delivered to its...
Purchase-Related Transactions Journalize entries for the following related transactions of Manville Heating & Air Company: a. Purchased $32,000 of merchandise from Wright Co. on account, terms 2/10, n/30. Merchandise Inventory Accounts Payable-Wright Co. Feedback a. A purchase increases inventory and the amount that is owed on account. b. Paid the amount owed on the invoice within the discount period. Accounts Payable-Wright Co. Cash Feedback b. A payment of the invoice within the discount period reduces Accounts Payable for the amount...
Recording Purchase transactions Jeet Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April. a. On April 1, Jeet Company purchased merchandise on account from Reece Company with credit terms of 2/10, n/30. The selling price of the merchandise was $4,100, and the cost of the merchandise sold was $2,450. b. On April 1, Jeet paid freight charges of $100 cash to have the goods delivered to its warehouse. c. On April...
Chapter 6 Homework Cornerstone Exercise 6-21 (Algorithmic) Recording Sales Transactions Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April: a. On April 1, Mathis Company purchased merchandise on account from Reece Company with credit terms of 2/10, n/30. The selling price of the merchandise was $3,100, and the cost of the merchandise sold was $2,450. Chapter 6 Homework $2,450. b. On April 1, Mathis paid freight charges of $100 cash...
Exercise 6-46 (Algorithmic) Recording Purchases Reeves Corporation uses the perpetual system to record inventory transactions. In a recent month, Reeves engaged in the following transactions: a. On April 1, Reeves purchased merchandise on credit for $21,900 with terms 2/10, n/30. b. On April 2, Reeves purchased merchandise on credit for $25,900 with terms 3/15, n/25. c.On April 9, Reeves paid for the purchase made on April 1. d. On April 25, Reeves paid for the merchandise purchased on April 2...
Cornerstone Exercise 6-29 (Algorithmic) Recording Purchase Transactions (Appendix 6A) For Rigoletto Corp. and Villanuevo, Inc., the following transactions occurred during the month of April: a. On April 1, Rigoletto Corp. purchased merchandise on account from Villanuevo, Inc. with credit terms of 2/10, 1/30. The selling price of the merchandise was $3,900 and the cost of the merchandise sold was $2,450. b. On April 1, Rigoletto paid delivery charges of $100 cash to have the goods delivered to its store. c....
Exercise 6-42 Recording Purchases Doha Enterprises uses the perpetual system to record inventory transactions. In a recent month, Doha engaged in the following transactions. a. On April 1, Doha purchased merchandise on credit for $25,150 with terms 2/10, n/30. b. On April 2, Doha purchased merchandise on credit for $28,200 with terms 3/15, 1/25. c. On April 9, Doha paid for the purchase made on April 1. d. On April 25, Doha paid for the merchandise purchased on April 2....
Sales-Related and Purchase-Related Transactions Using Perpetual Inventory System The following were selected from among the transactions completed by Babcock Company during November of the current year: Nov. 3. Purchased merchandise on account from Moonlight Co., list price $89,000, trade discount 30%, terms FOB destination, 2/10, n/30. 4. Sold merchandise for cash, $40,040. The cost of the goods sold was $20,620. 5. Purchased merchandise on account from Papoose Creek Co., $47,400, terms FOB shipping point, 2/10, n/30, with prepaid freight of...