Question

Record the following transactions into com Inc.'s joumal. Assume a perpetual inventory system Enter the transaction letter as the description when preparing a journal entry. When a transaction requires two separate journal entries, use the same letter for both descriptions Dates must be entered in the format ad mmm , 15 Jan General Journal Account Explanation F Debit Page GJE Credit (a) January 1: Zoom Inc.'s merchandise that cost $2.880 was sold to Stake Technology Inc. for $3.500 under credit forms of 2/15, V60, FOB destination (b) January 1: Zoom Inc. purchased merchandise from ABC Inc. for $4.400 cash, FOB destination (c) January 2: Paid $500 for freight charges on the sale of January 1. (d) January 3: Zoom Inc. purchased merchandise from Callaho Inc. for $9.900 under Credit terms of 2/10, 160 FOB destination. (e) January 5: Zoom Inc.'s merchandise was sold to Oppong Corporation for $4.900 under credit forms of 2/16, V60, FOB shipping point. The cost of the merchandise was $3.920 (1) January 5: Issued a $600 credit memorandum to Stake Technology Inc. for an allowance on goods sold on January 1 (9) January : Alter negotiations with Callaho Inc. concerning problems with the merchandise purchased on January 3, received a credit memorandum granting a price reduction of $1,900 th) January : Zoom Inc. purchased merchandise from Bentley Ing for $9.900 under credit forms of 2/10, 1/60, FOB destination January 15: Paid the balance due to Bentley Inc. January 16: Received the balance due from Stake Technology Inc. for the sale dated January 1. (k) March 2: Paid the balance due to Callaho Inc.

Answer 1

		Zoom Inc.
		Journal Entries
S.No.	Date	General Journal	Debit	Credit
a)	01-Jan	Accounts Receivable-Stake Technologies Inc.	$    3,600.00
		To Sales		$                                    3,600.00
		(Being amount of Merchandise Sold)
	01-Jan	Cost of goods sold	$    2,880.00
		To Merchandise Inventory		$                                    2,880.00
		(Being amount of cost of goods sold)
b)	01-Jan	Merchandise Inventory	$    4,400.00
		To Accounts Payable-ABC Inc.		$                                    4,400.00
		(Being amount of Merchandise Purchased from ABC Inc.)
c)	02-Jan	Freight Expenses	$        500.00
		To Cash		$                                        500.00
		(Being amount of Freight paid for 1 Jan sales to stake Technologies Inc.)
d)	03-Jan	Merchandise Inventory	$    9,900.00
		To Accounts Payable-Callaho Inc.		$                                    9,900.00
		(Being amount of goods purchased from Callaho Inc.)
e)	05-Jan	Accounts Receivable-Oppong Corporation	$    4,900.00
		To Sales		$                                    4,900.00
		(Being amount of sales to Oppong Corporation)
	05-Jan	Cost of goods sold	$    3,920.00
		To Merchandise Inventory		$                                    3,920.00
		(Being amount of cost of goods sold)
f)	05-Jan	Sales return & allowances	$        600.00
		To Accounts Receivable-Stake Technologies Inc.		$                                        600.00
		(Being amount of issue of credit memorandum for allowance of goods sold)
g)	06-Jan	Accounts Payable-Callaho Inc.	$    1,900.00
		To Merchandise Inventory		$                                    1,900.00
		(Being amount of received of credit memorandum for reduction of price)
h)	07-Jan	Merchandise Inventory	$    9,900.00
		To Accounts Payable-Brantley Inc.		$                                    9,900.00
		(Being amount of Merchandise Purchased from Brantley Inc.)
i)	15-Jan	Accounts Payable-Brantley Inc.	$    9,900.00
		To Merchandise Inventory=($9900*2%)		$                                        198.00
		To Cash=($9900*98%)		$                                    9,702.00
		(Being amount paid after adjusting 2% discount)
j)	16-Jan	Cash=($3000*98%)	$    2,940.00
		Sales Discount=($3000*2%)	$          60.00
		To Accounts Receivable-Stake Technologies Inc.($3600-$600)		$                                    3,000.00
		(Being amount received within 15 days 2% discount allowed)
k)	02-Mar	Accounts Payable-Callaho Inc.($9900-$1900)	$    8,000.00
		To Cash		$                                    8,000.00
		(Being amount paid after discount period)
l)	06-Mar	Cash	$    4,900.00
		To Accounts Receivable-Oppong Corporation)		$                                    4,900.00
		(Being amount received after discount period )
		FOB destination: Freight charges paid by seller.
		FOB Shipping Point: Freight charges paid by buyer.