Question

Sarvad Help Save & Chad Funk is a hair stylist who opened a business selling hair products. He imports products from around the world and sells to salons in Canada Oct. 1 Purchased $4,898 of hair spray from Orbit Pro; terms 3/10, n/30, FOB shipping point. The appropriate party paid the shipping cost of $370. 5 Sold shampoo costing $1,618 to Barber & Co. for a price of $2,300 with terms of 2/10, n/30, FOB shipping point. The appropriate party paid the shipping cost of $165. 7 Returned $2,200 of inventory to Orbit Pro due to an error in the October 1 order. 1e Paid Orbit Pro for the purchase on October 1. 14 Barber & Co. returned $440 of inventory from the sale on October 5. The inventory had a cost of $388. 22 Received the payment from Barber & Co. on the October 5 sale. 23 Purchased $5,400 of hair conditioner from Keratin Hair; terms 2/10, n/30, FOB shipping point. The appropriate party paid the shipping cost of $1,150. 25 Sold hair gel to Styling Room for an invoice price of $2,700, terms 2/10, 1/30, FOB destination. The hair gel had a cost of $1,890. The appropriate party paid the shipping cost of $575. 26 Paid for the purchase on October 23. 31 Received the payment from Styling Room on the October 25 sale. Cequired: ecord the journal entries for the month of October. (If no entry is required for a transaction/event, select "No journal entry equired" in the first account field. Journal entry descriptions are provided already in the journal entry worksheet.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 17 > < Prey 9 of 43 HIE Next >

Answer 1

Credit S.No. 1 Date Oct-01 Chad Funk Journal Books General Journal Purchases Account Payable (To record purchases of water spray) Debit 4,800 4,800 2 Oct-01 370 Freight Expenses Cash (To record payment of shipping charges) 370 3 Oct-05 2,300 Account Receivable Sales (To record sales of shampoo) 2,300 4 Oct-05 1,610 Cost of goods sold Merchandise Inventory (To record cost of goods sold) 1,610 5 Oct-05 No Journal Required 6 Oct-07 2,200 Account Payable Purchase return (To record return of inventory) 2,200 7 Oct-10 2,600 Account Payable Discount (2,600 x 3%) Cash (To record payment of purchase ) 78 2,522

8 Oct-14 440 Sales Return Account Receivable (To record sales return) 440 9 Oct-14 308 Merchandise Inventory Cost of goods sold (To record return of goods) 308 10 Oct-22 1,860 Cash Account Receivable (To record cash receipt of goods sold) 1,860 11 Oct-23 5,400 Purchases Account Payable (To record purchases of water spray) 5,400 12 Oct-23 1,150 Freight Expenses Cash (To record payment of shipping charges) 1,150 13 Oct-25 2,700 Account Receivable Sales (To record sales of shampoo) 2,700 14 Oct-25 1,890 Cost of goods sold Merchandise Inventory (To record cost of goods sold) 1,890 15 Oct-25 1,150 Freight expense Cash (To record freight expenses) 1,150

16 Oct-26 5,400 Account Payable Discount (5,400 x 2%) Cash (To record payment of purchase ) 108 5,292 17 Oct-31 2,646 54 Cash Discount (2,700 x 2%) Account Receivable (To record cash receipt) 2,700