Question

Financial Accounting Chapter 5, 6, 8 & 9 Test Name: Complete the following excersises in a neat orderly form. Chopter 5 Exercise On April 1" Naldo Party Outlet purchased $9,300 of merchandise from Jones's Wholesale Party Supplies that had a cost of $2,300: FOB Shipping Point, terms 2/10, n/30. Naido Party Outlet pays the freight costs of $350 on April 3 Damaged goods of $750 are returned for credit on April 5, the fair value of these items were $250. On April 8 Naldo Party Outlet pays Jones's Wholesale Party Supplies in full. Instructions: Prepare separate entries for each transaction on the books of Naldo Party Outlet, then on the books of Jones's Wholesale Party Supplies. Naldo Party Outlet General Journal CR Date Accounts DR Jones's Wholesale Party Supplies General Journal Accounts Date DR CR 14 15

Answer 1

Naldo party outlet General Journal
Date	Accounts	DR	CR
April.01	Purchases	$        9,300
	Accounts payable-Jone's wholesale party supplies		$        2,300
	(To record purchase of goods on credit)
April.03	Freight inward	$           350
	Cash		$           350
	(To reocord payment for freight charges)
April.05	Accounts payable-Jone's wholesale party supplies	$           750
	Purchase returns		$           750
	(To record return of damaged goods)
April.08	Accounts payable-Jone's wholesale party supplies	$        8,550
	Cash discount ((9300-750)*2%)		$           171
	Cash (8650-171)		$        8,379
	(TO record payment net of cash discount)

Jone's Wholesale party supplies General Journal
April.01	Accounts receivable-Naldo partly outlet	$        9,300
	Cost of goods sold	$        2,300
	Sales		$        9,300
	Inventory		$        2,300
	(To record sales on credit and cost of goods sold)
April.05	Sales returns	$           750
	Inventory	$           250
	Accounts receivable-Naldo partly outlet		$           750
	Cost of goods sold		$           250
	(To recored returned goods and cost)
April.08	Cash	$        8,379
	Cash discount ((9300-750)*2%)	$           171
	Accounts receivable-Naldo partly outlet		$        8,550
	(Record receivng from customer after cash discount)