Question

4. Please prepare the journal entre for Susan's Retailerine Susan's Retailerine uses the Perpetual intory System to account for its inventaries (25) Feb 1" Purchased an account $150,000 worth of merchandises from Tom Wholeselerine Freight is FOB Destination and the relevant party paid the $500 freight by cash. Cred terms Wia, N/30 Feb Received a credit for $40.000 worth of damaged merchandises to Tom Wholesaler, inc Feb y Paid the balance owed to Tom Wholeseller, Inc. Feb 10 Sold merchandises on account to fred Customer for $90,000. The merchandises had orginally cost $55,000. Credit terms 2/10, N/30 Feb 13". Fred Customer returned merchandises valued at $25,000. The merchandises had originally cost $15,000 Feb 20. Susan's Retailerine received the payment from Fred Customer Date Account Title Debit Credit

Answer 1

Journal Entries
Date	Account Title	Debit	Credit
Feb-01	Purchase A/c	149500
	freight	500
	Tom wholesale Inc		149500
	cash		500
	(out of total FOB price of 150000, freight is recorded separately and paid in cash)
Feb-03	Tom wholesale Inc	40000
	Purchase		40000
	(Credit given for 40000)
Feb-09	Tom wholesale Inc	109500
	cash		106215
	Discount		3285
	As payment made with in 10days ,discount received at rate of 3% on amount payable(149500-40000)
Feb-10	Customer	90000
	Sales		90000
	(Sales made to customer)
Feb-15	Sales Returns	25000
	Customer		25000
	(Sales Returns by customer)
Feb-26	Cash	65000
	Customer		65000
	(payment Received after credit period no discount is given)