Question

5-2B

Aelsh regerding the March 2 sale. Collectec 16 7 Paid for the March 4 purchas ho a Pald for the March 10 purchsce Collected the balance owing ery erng he ssie of March 6. 31 Part 2 Based on the information provided above, caiculate (a) net ss, (b) cost of goods sold, and (c) gross profit for de month ended March 31, 2020, Problem 5-2B Journal entries for merchandising ectivities--perpetual LO3 Prepare general journal entries to record the following perpetual system merchandising transactions of Baby F Company. Use a separate account for each receivable and payable; for example, record the purchase on May 2 in Accounts Payable-Mobley Co. 2 Purchased merchandise from Mobley Co. for $18,000 under credit terms of 1/15, n/30, FOB factory. Sold merchandise to Cornerstone Co. for $3,400 under credit terms of 2/10, n/60, FOB shipping point. The merchandise had cost $2,100. May Paid $750 for freight charges on the purchase of May 2. Sold merchandise that cost $3,600 for $5,200 cash. 4. 9. Purchased merchandise from Richter Co. for $7.300 under credit terms of 2/15, n/60, FOB destination. 10 12 Received a $600 credit memo acknowledging the return of merchandise purchased on May 10. 14 Received the balance due from Cornerstone Co. for the credit sale dated May 4. Sold for cash a piece of office equipment at its original cost, $1,200. 15 Paid the balance due to Mobley Co. 17 Purchased $1,750 of cleaning supplies from A & Z Suppliers; terms n/15. 18 Sold merchandise that cost $2,700 to Harrill Co. for $3,900 under credit terms of 2/15, n/60, FOB shipping point. Issued a $500 credit memo to Harrll Co. for an allowance on goods sold on May 20. 20 22 23 Received a debit memo from Harril Co. for an error that overstated the total invoice by $150. 25 Paid Richter Co. the balance due. 31 Received the balance due from Harrill Co. for the credit sale dated May 20. Sold merchandise that cost $10,200 to Cornerstone Co. for $15,000 under credit terms of 2/10, n/60, FOB shipping point. 31 uysts Component: You are working in Baby Supply's accounts payable department and have been Instructed to pay the Richter account on the last day of the discount period even though the money will have ID be borrowed at 6% interest. Why would the company borrow to pay within the discount period? Show your calculations (round to two decimal places). roblem 5-3B Journal entries for merchandising activities-perpetual LO3 se Me Co. buys and sells new and used equipment for amusement parks, carnivals, parks, and zoos. Pre- Meheral journal entries to record the following perpetual system merchandising transactions of Amuse Use a separate account for each receivable and payable; for example, record the purchase on July 3 in Accounts Payable-CMP Corp. 383

Answer 1

Subject maya. Date: _/_/_ Journer Entries in the Books MON TUE WED THR FRI SAT SUN of Baby supply company Purchase All or $ 18000 - To mobley co. $1800 (Being Goods purchased from mobley co.. on credit term of /15 n/30) may 4 $3400 Cornerstone co. Ale or To sales Alc C being sales made to term of 2/10, 1/60) Cornerstone on $3400 credit maya. freight charges Alc or To Cash Being freight charges $ 750 $ 750 for may a purchase), paid May I cash All or a $ 500 To sales $ 5200 Being Cash sales made) Purchase Alc or $ 7300 To Richter Co. All $7300 (Being purchase made from Richter Co. on credit term of 2/15 , n/60) may lo May 12 Richter Co. Ale or $600 To purchase Return All $600 (Being credit nemo Reced from Richter Co.). may 14. - Cash AlC or $3332 Discount allowed Alc pr & 68 To Corne slone Ala _ (Being comenstone co. Ale settled) $3400

Subject $ 1200 a Mayis v $ 1200 2 May $18000 Cash Alcor To office equipment ALC (Being office equipment Sold) Mobley Co. All or To Discount Received ALC To Cash (Being mobley co. Ale settled Purchase All or To A42 Supplies (Being Goods purchased from A&z term of n/15) t. $180 $ 17,820 3 Mays $ 1750 Suupplies on $1750 Credit mayo Harrill co. ALL or $ 3900 - To sales Alc (Being sales made to Harsill co.on credit term of 2/15, 1160) may 224 sales Return Ale Dr $500 To Harrill co.. Being credit nemo Issued by us ) $ 500 2 may $150 sales - (Being Return Alc or To Harrill Co. original Bill was oversteated now rectified)

May 31 Cash Al Dr $ 3185 Discount allowed AIC or $ 65 To Harrill co. $ 3250 (Being Harrill Co. AIC settled) May 31 Corner stone Alc or $ 15000 - To sales Being Goods sold to Comerstone co on credit a term of 2/109 n/60) Julyg Richter co. All or 6teo To cash $ 6700 Being Richter co. Al settled on last day of Credit term of n/60). Calculation :- mitt. on Richter Alc payable => { $6700X60X72] => $67 one day ontl. = 677 => $1.116 102 But if Co. choose to get discount of $134 credit term @ 2/15 they can