Question

Journalize the following transactions that occurred in September 2018 for Water Works, assuming the perpetual inventory system is being used. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. Water Works estimates sales returns at the end of each month. (Record debits first, then credits. Exclude explanations from journal entries. Assume the company records sales at the net amount.) (Click the icon to view the transactions.)

Sep. 3 Purchased merchandise inventory on account from Sheldon Wholesalers, $7,000. Terms 3/15, n/EOM, FOB shipping point.

 4 Paid freight bill of $65 on September 3 purchase.

 4 Purchase merchandise inventory for cash of $2,400.

 6 Returned $400 of inventory from September 3 purchase.

 8 Sold merchandise inventory to Hilton Company, $6,000, on account. Terms 3/15, n/35. Cost of goods, $2,460.

 9 Purchased merchandise inventory on account from Tarin Wholesalers, $11,000. Terms 1/10, n/30, FOB destination.

 10 Made payment to Sheldon Wholesalers for goods purchased on September 3, less return and discount.

 12 Received payment from Hilton Company, less discount. 13 After negotiations, received a $100 allowance from Tarin Wholesalers.

 15 Sold merchandise inventory to Jex Company, $2,900, on account. Terms n/EOM. Cost of goods, $1,334.

 22 Made payment, less allowance, to Tarin Wholesalers for goods purchased on September 9.

 23 Jex Company returned $500 of the merchandise sold on September 15. Cost of goods, $230.

 25 Sold merchandise inventory to Smede for $2,100 on account that cost $903. Terms of 2/10, n/30 was offered, FOB shipping point. As a courtesy to Smede, $70 of freight was added to the invoice for which cash was paid by Water Works.

 29 Received payment from Smede, less discount.

 30 Received payment from Jex Company, less return.

Answer 1

Date	Accounts	Debit	Credit
Sep. 3	Merchandise Inventory	7,000
	Accounts Payable—SheldonWholesalers		7,000
Date	Accounts	Debit	Credit
Sep. 4	Merchandise Inventory	65
	Cash		65
Date	Accounts	Debit	Credit
Sep. 4	Merchandise Inventory	2,400
	Cash		2,400
Date	Accounts	Debit	Credit
Sep. 6	Accounts Payable—SheldonWholesalers	400
	Merchandise Inventory		400
Date	Accounts	Debit	Credit
Sep. 8	Accounts Receivable—Hilton Company	5,820
	Sales Revenue		5,820
Date	Accounts	Debit	Credit
Sep. 8	Cost of Goods Sold	2,460
	Merchandise Inventory		2,460
Date	Accounts	Debit	Credit
Sep. 9	Merchandise Inventory	11,000
	Accounts Payable—Tarin Wholesalers		11,000
Date	Accounts	Debit	Credit
Sep. 10	Accounts Payable—SheldonWholesalers	6,600
	Merchandise Inventory		198
	Cash		6,402
Date	Accounts	Debit	Credit
Sep. 12	Cash	5,820
	Accounts Receivable—Hilton Company		5,820
Date	Accounts	Debit	Credit
Sep. 13	Accounts Payable—Tarin Wholesalers	100
	Merchandise Inventory		100
Date	Accounts	Debit	Credit
Sep. 15	Accounts Receivable—Jex Company	2,900
	Sales Revenue		2,900
Date	Accounts	Debit	Credit
Sep. 15	Cost of Goods Sold	1,334
	Merchandise Inventory		1,334
Date	Accounts	Debit	Credit
Sep. 22	Accounts Payable—Tarin Wholesalers	10,900
	Cash		10,900
Date	Accounts	Debit	Credit
Sep. 23	Refunds Payable	500
	Accounts Receivable—Jex Company		500
Date	Accounts	Debit	Credit
Sep. 23	Merchandise Inventory	230
	Estimated Returns Inventory		230
Date	Accounts	Debit	Credit
Sep. 25	Accounts Receivable—Smede	2,128
	Sales Revenue		2,058
	Cash		70
Date	Accounts	Debit	Credit
Sep. 25	Cost of Goods Sold	903
	Merchandise Inventory		903
Date	Accounts	Debit	Credit
Sep. 29	Cash	2,128
	Accounts Receivable—Smede		2,128
Date	Accounts	Debit	Credit
Sep. 30	Cash	2,400
	Accounts Receivable—Jex Company		2,400