Question

The Williams Company sells a product called Mix-Right for $15 each and uses a perpetual inventory system to account for its merchandise. The beginning balance of Mix-Rights and transactions during October 2017 were as follows:

Oct	1	Balance: 96 units costing $5 each.
	3	Purchased 111 units from Arnold Brothers costing $7.50 each
	4	Returned 31 of the units purchased on October 3.
	9	Sold 86 units to Kitchen Club, invoice #210.
	15	Purchased 211 units from Arnold Brothers costing $8.30 each.
	18	Sold 172 units to Thorhild Co-op, invoice #211.
	19	Paid for the October 3 purchase; cheque #101.
	23	Paid for the October 15 purchase, cheque #102.
	24	Sold 61 units to Boyle Grocery, invoice #212.
	31	Purchased 86 units from Arnold Brothers costing $8.00 each.

Required:
a. Journalize the October transactions in the sales, purchases, and cash disbursements journals. Assume all sales and purchases are on credit; terms 2/10, n/30. Under the assumption that the company keeps its records on a weighted average basis, enter the beginning balances and post each transaction on an inventory subledger record. Posting to other subledgers is not required. (Enter the transactions in the order provided in the question. If no entry is required for a transaction/event, select "No journal entry required" in the first account field of the journal entry worksheet. Round final answers to 2 decimal places.)

Answer 1

Journal entries in the books of Williams Company
S.no	Date	particulars	Debit	Credit
1	oct-1	No journal entry required
2	oct-3	Purchases A/c                                             Dr.	$    832.50
		To Arnold Brothers A/c		$    832.50
	Being Credit purchases made from Arnold Brothers
3	oct-4	Arnold Brothers A/c                                   Dr.	$    232.50
		To purchase returns A/c		$    232.50
	Being part Credit purchases made on oct-3 is returned
4	oct-9	Kitchen club A/c                                           Dr.	$ 1,290.00
		To Sales A/c		$ 1,290.00
	Being Credit sales made to Kitchen club vide invoice no #210
5	oct-15	Purchases A/c                                             Dr.	$ 1,751.30
		To Arnold Brothers A/c		$ 1,751.30
	Being Credit purchases made from Arnold Brothers
6	oct-18	Thorhild Co-op A/c                                 Dr.	$ 2,580.00
		To Sales A/c		$ 2,580.00
	Being Credit sales made to Thorhild Co-op vide invoice no #211
7	oct-19	Arnold Brothers A/c                                   Dr.	$    600.00
		To Bank A/c		$    600.00
	Being cash paid to Arnold Brothers for purchases made on oct-3
8	oct-23	Arnold Brothers A/c                                   Dr.	$ 1,751.30
		To Bank A/c		1716.27
		To Discount A/c		35.03
	Being cash paid to Arnold Brothers for purchases made on oct-15 since payment is made within 10 days eligible for 2% discount
9	oct-24	Boyle Grocery A/c                                 Dr.	$    915.00
		To Sales A/c		$    915.00
	Being Credit sales made to Boyle Grocery vide invoice no #212
10	oct-3	Purchases A/c                                             Dr.	$    688.00
		To Arnold Brothers A/c		$    688.00
	Being Credit purchases made from Arnold Brothers