Question

Question 10 iew Policies urrent Attempt in Progress Presented here are selected transactions for Alpine Tours Inc. during September of the current year. Alpine Tours uses a perpetual inventory system. Sept. 2 Purchased equipment on account for $61,900, terms n/30, FOB destination. 3 Freight charges of $970 were paid by the appropriate party on the September 2 purchase of equipment. 4 Purchased supplies for $3,800 cash. 6 Purchased inventory on account from Winterholt Cortipany at a cost of $63,800, terms 1/15, 1/30, FOB shipping point. 7 Freight charges of $1,800 were paid by the appropriate party on the September 6 inventory purchase. 8 Returned damaged goods costing $5,200 that were originally purchased from Winterholt Company on September 6. Received a credit on account. 9 Sold goods costing $15,400 to Fischer Limited for $20,000 on account, terms 2/10, 1/30, FOB destination 10 Freight charges of $410 were paid by the appropriate party on the September 9 sale of inventory 17 Received the balance due from Fischer. 20 Paid Winterholt Company the balance due. 21 Purchased inventory for $6,400 cash 22 Sold inventory costing $18,900 to Kun-Tai Inc. for $ 27,900 on account, terms n/30, FOB shipping point 23 Freight charges of $400 were paid by the appropriate party on the September 22 sale of Inventory 28 Kun-Tai returned goods sold for $9.500 that cost $7,000. The merchandise was restored to inventory. Part 1 Record the September transactions on Alpine Tours's books. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter o for the amounts. Round answers to the nearest whole dollar, e.g. 5,275.)

Answer 1

Part 1

Debit Credit Date Account Title September 2 Equipment Accounts payable $61.900 $61.900 3 No entry as FOB purchase = $3,800 4 Supplies Cash $3,800 $63.800 6 Inventory Accounts payable -(winterholt Co.) $63,800 $1.800 7 Inventory (frieght charges) Cash $1,800 $5,200 8 Accounts payable -(winterholt Co.) Inventory $5,200

$20.000 9 Accounts receivable (F limited) Sales $20.000 $15.400 COGS Inventory $15.400 S410 10 Inventory Cash $410 17 Cash Discount ($20000 x 2%) Accounts receivable (F Limited) $19.600 $400 $20,000 $63,800 20 Accounts payable (winterholt co.) Cash Inventory (563,800 x 1%) $63.162 $638

$6.400 21 Inventory Cash $6,400 $27.900 22 Accounts receivable (Kun-Tai Inc.) Sales $27.900 $18.900 COGS Inventory $18.900 23 No entry as FOB shipping $9.500 28 Sales Accounts receivable (Kun-Tai Inc.) $9,500 $7.000 Inventory COGS $7,000

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Part 2

Credit Date Oct. 03 Account Title Accounts payable (winterholt co.) Cash Debit $63.800 $63,800 The cost of purchase discount loss is $638