Question

Please do S5-3, S5-4, and S5-8.

S5-3 Journalizing purchase transactions Consider the following transactions for Derry Drug Store: Learr Jun. 2 4 8 14 Derry buys $23,000 worth of inventory on account with credit terms of 2/15, 1/30, FOB shipping point. Derry pays a $110 freight charge. Derry returns $6,200 of the merchandise due to damage during shipment. Derry paid the amount due, less return and discount. Requirements 1. Journalize the purchase transactions. Explanations are not required. 2. In the final analysis, how much did the inventory cost Derry Drug Store?

Answer 1

Answers (53) 1: Journalize the purchase transactions i ereditat) $ 23,000 $23.000 $110 I4404 $ 10 $6.200 349,08 Date Altounts Titles and explanation Debitck2.. Jun,ca Merchandise inurlony Account payable merchandis inventory - cash Account payable merchandio inventory niccount payable cash merchandise inventory => Account payable, Jun 14 = $23,000 - $6, 200 = $ 16,800 $61200 July $16.800 $16,464 336 fi 16,800 X 0.02 = 336 ) 5) Cash = 16,600:- 336 = $16,464

☺ The frucobry cost Deny Dreg store :- V Particulars Amount (4) purchases $3,000 Returns ... (6 6.000.) Discounts t64336 ) freight unum annars $10. Loit purchase cost $16,574 Hence, it is ascertained that the net preschoise. ciast accounts fow $16.5741 (514) Journalias the following sales transactions for paul sportwear' Date Debit ck 2 credit (1) Augin $66,000 $66.000 Aug 1 - Account Titles & Explanation. Account Receivable --- sales Revenue sales Revenue mochandice inventary sales Retum Et allowances- Alcooluit Receivable $ 33.000 $33000 Auges $5,000 $5,000

Augs $2,500 merchandise inventory cost of goods sold cash 401500 | Aug-lo $59,780 sales Relun and allowances. ocessado Account Receivable $61,000 Aug-to account receivable = sales - sales retem = $66,000 - $5,000 - $61,000 Discount rata sales re-fern and allowances -- account receivable . Con Discount = $61,000 xal), = $1,320 Cash - Accounts receivable - Discount = $61,000 - $1,220 $59,780 . Prepare carissa communications multi a step income statement for the you. Ended July 21,2016

Amounta) Amount (k] $42.000 $(7,400) $4,300] $ 30,300 $118.8002 $11,500 particulars. sales Revenue sales Refeum and allowances soles discounts wich_soles Xevenue cost of goods sold gross profit operating expenses Selling Expene's odmünistrolinc expenes Toted operating Expenses operating income other revenuci and Spences: pinterest Expense Othere ne venenos, and (Expenses) Net income: $11300 $ 3,100 $uuoo $ 7,100 (30) other conur (20) $7080 net incommie = 7,080