Question

The following selected transactions were completed by Capers Company during October of the current year: Oct. 1 Purchased merchandise from UK Imports Co., $13,031, terms FOB destination, n/30. 3 Purchased merchandise from Hoagie Co., $9,150, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $205 was added to the invoice. 4 Purchased merchandise from Taco Co., $14,800, terms FOB destination, 2/10, n/30. 6 Issued debit memo to Taco Co. for $4,600 of merchandise returned from purchase on October 4. 13 Paid Hoagie Co. for invoice of October 3. 14 Paid Taco Co. for invoice of October 4, less debit memo of October 6. 19 Purchased merchandise from Veggie Co., $26,320, terms FOB shipping point, n/eom. 19 Paid freight of $410 on October 19 purchase from Veggie Co. 20 Purchased merchandise from Caesar Salad Co., $20,100, terms FOB destination, 1/10, n/30. 30 Paid Caesar Salad Co. for invoice of October 20. 31 Paid UK Imports Co. for invoice of October 1. 31 Paid Veggie Co. for invoice of October 19.

Answer 1

Date	Account title and explanation	Debit	Credit
Oct 1	Inventory	$13,031
	Accounts payable-UK Imports Co.		$13,031
	[To record purchase of inventory on account]
Oct 3	Inventory	$9,355
	Accounts payable-Hoagie Co.		$9,355
	[To record purchase of inventory on account]
Oct 4	Inventory	$14,800
	Accounts payable-Taco Co.		$14,800
	[To record purchase of inventory on account]
Oct 6	Accounts payable-Taco Co.	$4,600
	Inventory		$4,600
	[To record purchase returns]
Oct 13	Accounts payable	$9,355
	Inventory [9,150 x 2%]		$183
	Cash		$9,172
	[To record cash paid for accounts payable]
Oct 14	Accounts payable-Taco Co. [14800-4600]	$10,200
	Inventory [10200 x 2%]		$204
	Cash		$9,996
	[To record cash paid for accounts payable]
Oct 19	Inventory	$26,320
	Accounts payable-Veggie Co.		$26,320
	[To record purchase of inventory on account]
Oct 19	Inventory	$410
	Cash		$410
	[To record payment of freight]
Oct 20	Inventory	$20,100
	Accounts payable-Caesar Salad Co.		$20,100
	[To record purchase of inventory on account]
Oct 30	Accounts payable-Caesar Salad Co.	$20,100
	Inventory [20100 x 1%]		$201
	Cash		$19,899
	[To record cash paid for accounts payable]
Oct 31	Accounts payable-UK Imports Co.	$13,031
	Cash		$13,031
	[To record cash paid for accounts payable]
Oct 31	Accounts payable-Veggie Co.	$26,320
	Cash		$26,320
	[To record cash paid for acconts payable]