Question

4 - Record journal entries for Merchandiser Co. using the perpetual method. To get full points, sales needs to be in the following format: AIR 100 Sales 100 COGS 40 love to General Journal Date Account/Explanation PR Debit Sept Credit 4 (Purchased 700 units for so. 20 each from Supplier Co. with terms of 1/10 n/60) Sept 6 (Sold 840 units to Client Co. for Si each with terms 2/10 n/30-cach unit cost $0.20 ) Sept 19 (Payment received from Client Co.) Sept 25 (Paid Supplier Co. --check #983) Sept (Purchased 371 units for S0.30 each from Vendor Co. with terms of 3/5 n/30) Sept 27 (Returned 21 units to Vendor Co. and received credit memo #65) Sept 28 (Sold 350 units to Buyer Co. for $1.20 each with terms 2/10 1/60--each unit cost S0.29) Sept 29 (Buyer Co. returned 35 units to us & we issued a credit memo) Sept 30 (Paid Vendor Company) Sept 31 (Payment received from Buyer Co.)

Answer 1

General Journal
Date	Account/Explanation	PR	Debit	Credit
Sept'         4	Inventory		140
	A/P			140		(700 X .20)
	(Purchased 700 units for $ 0.20 each from supplier co with terms of 1/10 n/60
Sept'         6	A/R		840			(840 X 1)
	Sales			840
	Cost of Goods Sold		168			(840 X 0.20)
	Inventory			168
	(Sold 840 units to client Co for $1 each with terms 2/10, n/30 -each unit cost $0.20)
Sept'         19	Bank		840
	A/R			840
	(Payment received from client co)
Sept'         25	A/P		140
	Bank			140
	(Paid Supplier Co --Check £ 983)
Sept'         26	Inventory		111.3			(371 X .30)
	A/P			111.3
	(Purchased 371 units for $ 0.30 each from vendor co with terms of 3/5 n/30
Sept'         27	A/P		6.3			(21 X .30)
	Inventory			6.3
	(Returned 21 units to vendor Co and received credit memo 65)
Sept'         28	A/R		420			(350 X 1.20)
	Sales			420
	Cost of Goods Sold		101.5			(350 X .29)
	Inventory			101.5
	(Sold 350 units to Buyer Co for $1.20 each with terms 2/10, n/69 -each unit cost $0.29)
Sept'         29	Sales Reurn		42			(35 X 1.2)
	A/R			42
	Inventory		10.15			(35 X .29)
	Cost of Goods Sold			10.15
	(Buyer Co returned 35 units to us & we issued a credit memo)
Sept'         29	A/P		105
	Bank			101.85		(111.3-6.3) X 97%
	Purchase Discount			3.15		(111.3-6.3) X 3%
	(Paid Vendor Company)
Sept'         31	Bank		370.44			(420-42) X 98%
	Sales Discount		7.56			(420-42) X 2%
	A/R			378
	(Payment Received from Buyer Co)