Question

Record the following purchases and sales transactions for Manioc Corp. using the general journal form provided below. Assume Manioc uses a periodic inventory system. Omit transaction descriptions from entries.

Date	Transaction
Apr.	1	Purchased merchandise on account, list price $22,000, trade discount 30%, terms FOB destination, 2/10, n/30.
	4	Sold merchandise on account, $8,500.
	6	Purchased merchandise on account, $18,000, terms FOB shipping point, 2/10, n/30, with prepaid freight of $140 added to the invoice.
	8	Sold merchandise on VISA, $14,500.
	8	Returned damaged merchandise, $800, purchased on April 6.
	9	Paid for the merchandise purchased on April 1, less discount.
	12	Received cash on account from the April 4 sale.
	13	Paid for merchandise purchased on April 6, less return and discount.

Required:

Journalize the transactions related to the purchases and sales transactions for Manioc Corp. Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Journal Entries under periodic inventory system:

Date	Account title and Explanation	Debit	Credit
Apr.1	Purchases	$15,400
	Accounts payable [22,000 x 70%]		$15,400
	[To record purchase of merchandise on account]
Apr.4	Accounts receivable	$8,500
	Sales revenue		$8,500
	[To record sales on account]
Apr.6	Purchases	$18,000
	Freight-in	$140
	Accounts payable		$18,140
	[To record purchases on account]
Apr.8	Cash	$14,500
	Sales revenue		$14,500
	[To record sales though VISA Card]
Apr.8	Accounts payable	$800
	Purchase returns		$800
	[To record purchase returns]
Apr.9	Accounts payable	$15,400
	Purchase discount [15,400 x 2%]		$308
	Cash		$15,092
	[To record cash paid to creditors]
Apr.12	Cash	$8,500
	Accounts receivable		$8,500
	[To record cash collected from customers]
Apr.13	Accounts payable [18,140-800]	$17,340
	Purchase discount [17,340 x 2%]		$346.80
	Cash		$16,993
	[To record cash paid to creditors]