Question

Bushard Company (buyer) and Schmidt, Inc. (seller) engaged in the following transactions during February 2019: Bushard Company DATE TRANSACTIONS 2019 Feb. 10 Purchased merchandise for $6,500 from Schmidt, Inc., Invoice 1980, terms 2/10, n/30. Received Credit Memorandum 230 from Schmidt, Inc., for damaged merchandise totaling $350 that was returned the goods were purchased on Invoice 1980, dated February 10. Paid amount due to Schmidt, Inc., for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, check 2010. Schmidt, Inc. DATE TRANSACTIONS 2019 Feb. 10 Sold merchandise for $6,500 on account to Bushard Company, Invoice 1980, terms 2/10, n/30. The cost of merchandise sold was $3,750. Issued Credit Memorandum 230 to Bushard Company for damaged merchandise totaling $350 that was returned; the goods were purchased on Invoice 1980, dated February 10. The cost of the returned goods was $270. Received payment from Bushard Company for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, check 2010. Both companies use the perpetual inventory system. Journalize the transactions above in a general journal for both Bushard Company and Schmidt, Inc. (Round final answers to the nearest whole dollar value.) Complete this question by entering your answers in the tabs below.

Answer 1

In the books of Bushard Company(Buyer) |Description Feb-10 Merchandise Inventory In the books of Schmidt Inc(Seller) Date Credit Debit Date Debit Description Credit Feb-10 Accounts Receivable- Bushard Company $6,500 6,500 $ 6,500 Accounts payable- Schmidt Inc Sales revenue 6,500 Feb-13 Accounts payable- Schmidt Inc Merchandise Inventory Feb-10 Cost of Goods Sold $3,750 350 Merchandise Inventory $ 3,750 350 Feb-19 Accounts payable- Schmidt Inc Purchase discounts 6500-350 Feb-13 Sales returns & allowances 123 $ 350 6,150 Accounts Receivable- Bushard Company $ 350 6150*2% 6,027 6150-123 Cash Merchandise Inventory Cost of Goods Sold $ 270 $ 270 Feb-19 Cash $6,027 6150-123 $ 123 6150*2% $ 6,150 6500-350 Sales Discounts Accounts Receivable- Bushard Company