Question

Merchandising Learning Obje 5.324 Joumali Journalise the follo Journalizing purchase and sale transactions te the following transactions that occurred in November 2016 for May's ure Park. No explanations are needed. Identify each accounts payable and ors receivable with the vendor or customer name. Nov. 14 Merch. In Adventure Park. No accounts receivable 6 8 10 11 12 13 14 16 Purchased merchandise inventory on account from Valera Company. 58,000 Terms 1/10, VEOM, FOB shipping point. Paid freight bill of $160 on November 4 purchase. Returned half the inventory purchased on November 4 from Valera Company Sold merchandise inventory for cash, $1,700. Cost of goods, $680. FOB destination Sold merchandise inventory to Garrison Corporation, $10,300, on account, terms of 3/10, IVEOM. Cost of goods, $5,150. FOB shipping point. Paid freight bill of $30 on November 10 sale. Sold merchandise inventory to Cain Company $9,000, on account, terms of 1/15, 1/45. Cost of goods, $4,500. FOB shipping point Paid the amount owed on account from November 4, less return and discount. After negotiations, granted a $200 allowance to Garrison Corporation on November 11 sale. Received defective inventory as a sales return from the November 13 sale, $400. Cost of goods, $200. Purchased Inventory of $3,700 on account from Regan Corporation Payment terms were 2/10, 1/30, FOB destination. Received cash from Garrison Corporation, less allowance and discount. Paid amount owed on account from November 18, less discount. Received cash from Cain Company, less return and discount. Purchased inventory from Sanders Corporation for cash, $12,000, FOB shipping point. Freight in paid to shipping company. $200. 17 18 20 26 28 29

Answer 1

May's Adventure Park Journal entries Date Account 4-Nov Inventory Accounts Payable - Valera Company Credit Calculation Debit $ 8,000 $ 8,000 $ 160 6-Nov Inventory Cash $ 160 $ 4,000 =8,000/2 8-Nov Accounts Payable - Valera Company Inventory $ 4,000 $ 1,700 10-Nov Cash Sales $ 1,700 $ 680 10-Nov Cost of goods sold Inventory $ 680 $ 10,300 11-Nov Accounts Receivable - Garrison Corporation Sales $ 10,300 $ 5,150 11-Nov Cost of goods sold Inventory $ 5,150 $ 30 12-Nov Freight out expenses Cash $ 30 $ 9,000 13-Nov Accounts Receivable - Cain Company Sales $ 9,000 $ 4,500 13-Nov Cost of goods sold Inventory $ 4,500 $ 4,000 14-Nov Accounts Payable - Valera Company Cash Inventory $ $ =8,000-4,000 3,960 40 -4,000*1% $ 200 16-Nov Sales Returns & Allowances Accounts Receivable - Garrison Corporation $ 200 $ 400 17-Nov Sales Returns & Allowances Accounts Receivable - Cain Company $ 400 $ 200 17-Nov Inventory Cost of goods sold $ 200 $ 3,700 18-Nov Inventory Accounts Payable - Regan Corporation $ 3,700 20-Nov Cash Sales Discounts Accounts Receivable - Garrison Corporation $ $ 9,797 303 =10,100*3% =10,300-200 $ 10,100 $ 3,700 26-Nov Accounts Payable - Regan Corporation Cash Inventory $ $ 3,626 74 -3,700*2% 28-Nov Cash Sales Discounts Accounts Receivable - Cain Company $ $ 8,514 86 $ 8,600 =9,000-400 $ 12,000 29-Nov Inventory Accounts Payable - Sanders Corporation $ 12,000 $ 200 29-Nov Inventory Cash $ 200