Question

5-3B (Journal Entries for top chart)

CHAPTER 5 Accounting for Merchandising Activities July 3 Purchased bumper cars from CMP Corp. for $32.000 under credit terms of 1/10 IVO. FOB destination 4 At CMP's request paid $1.500 for freight charges on the July 3 purchase, reducing the amount owego 7 Sold cotton candy machines to West Coast Zoo for $21,000 under credit terms of 2/10, 1/60, FOB The merchandise had cost $17.500 10 Purchased snow cone machines from Cimarron Corporation for $29,300 under credit terms of 1/10, shipping point 11 Paid $1,200 shipping charges related to the July 7 sale to West Coast Zoo 12 West Coast Zoo returned merchandise from the July 7 sale that had cost $2,500 and been sold for $3500 merchandise was restored to inventory 14 After negotiations with Cimarron Corporation concerning problems with the merchandise purchased on July received a credit memo from Cimarron granting a price reduction of $4,100 17 Received balance due from West Coast Zoo for the July 7 sale. 18 Sold for cash a piece of vacant land for its original cost of $62.000. 19 Purchased a used van for the business, $28,000, pald cash of $10,000 and borrowed the balance from the bar 20 Paid the amount due Cimarron Corporation for the July 10 purchase. 21 Sold a climbing wall to Canadian National Exhibition for $18,000 under credit terms of 1/10, 1/30,FOB shoping point. The merchandise had cost $13,100. 24 Canadian National Exhibition requested a price reduction on the July 21 sale because the merchandise did it meet specifications. Sent Canadian National Exhibition a credit memo for $3.000 to resolve the issue. 31 Received Canadian National Exhibition's payment of the amount due from the July 21 purchase. 31 Paid CMP Corp. the amount due from the July 3 purchase, Analysis Component: Regarding the July 24 transaction, what alternative is there to granting a credit Be sure to identify and explain an advantage and disadvantage of the alternative. Problem 5-4B Adjusting entries and income statements-perpetual LO5 eXcel CHECK FIGURES: 1. Income statement columns = $435,000; 2. Loss = $44,000 The following information is from the unadjusted trial balance for Journey's End Company pre 000 the end of the fiscal year: Credit