Question

Brief Exercise 5-4 Prepare the journal entries to record the following purchase transactions in Oriole Company's books. Oriole uses a perpetual inventory system. Jan. 2 4 6 Feb. 1 Oriole purchased $20,300 of merchandise from Feng Company, terms n/30, FOB shipping point. The correct company paid freight costs of $295. Oriole returned $2,100 of the merchandise purchased on January 2 because it was not needed. Oriole paid the balance owing to Feng. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, sele problem.) Date Account Titles and Explanation Debit Credit (To record purchase on account.) (To record cash payment of freight.) (To record purchase return.) (To record payment on account.)

Answer 1

Credit Debit $ 20,300 2 1 Date Account Titles and Explanation Jan-02 Inventory Accounts Payable - Feng Company (To record purchase on account) $ 20,300 mt in in mm O $ 295 Jan-04 Inventory Cash (To record cash payment of freight) $ 295 $ 2,100 Jan-06 Accounnts Payable - Feng Company Inventory $ 2,100 1$ 18,200 3 4 Feb-01 Accounts Payable - Feng Company Cash $ 18,200 5

Date Account Titles and Explanation Jan-02 Accounts Receivable - Xiaoyan Company Sales (To record sales on account) Debit Credit 16,000 16,000 6,320 Jan-02 Cost of Goods Sold Inventory (To record cost of goods sold) 6,320 1,300 1,300 Jan-06 Sales Return | Accounts Receivable - Xiaoyan Company || (To Record credit for goods returned) Inventory | Cost of Goods Sold (To record cost of returned goods.) 510 om st Non 510 14700 Feb-01 Cash Accounts Receivable - Xiaoyan Company (Collection on account.) 14700

(A) Net Sales (B) Gross Profit (C) Operating Expenses (D) Profit from Operations (E) Profit $ $ $ $ $ 5,38,500 ($555,000 - $16,500) 1,38,500 ($538,500 - $400,000) 1,30,900 ($45,000 + $12,500 + $56,000 + $3,200 + $10,500 + $5,600) 7,600 ($138,500 - $130,900) 16,200 ($7,600 + $8,600)

Credit Debit $ 13,000 Date Account Titles and Explanation Feb-05 Inventory Account Payable - NW Wholesale Company (Purchase on account) $ 13,000 $ 180 Feb-06 Inventory Cash (To record cash payment of freight) $ 180 $ 1,400 Feb-08|Account Payable - NW Wholesale Company Inventory (To record purchase return) $ 1,400 $ 11,600 Feb-11 Account Payable - NW Wholesale Company Discount Received Cash (Payment on account) $ $ 232 11,368