Question

Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System The following selected transactions were completed during April between Swan Company and Bird Company: Apr. 2. Swan Company sold merchandise on account to Bird Company, $14,400, terms FOB shipping point, 1/10, n/30. Swan Company paid freight of $515, which was added to the invoice. The cost of the merchandise sold was $9,100. 8. Swan Company sold merchandise on account to Bird Company, $29,000, terms FOB destination, 2/15, n/30. The cost of the merchandise sold was $17,400. 8. Swan Company paid freight of $740 for delivery of merchandise sold to Bird Company on April 8. 12. Bird Company paid Swan Company for purchase of April 2. 18. Swan Company paid Bird Company a refund of $2,000 for defective merchandise in the April 2 purchase. Bird Company agreed to keep the merchandise. 23. Bird Company paid Swan Company for purchase of April 8. 24. Swan Company sold merchandise on account to Bird Company, $12,800, terms FOB shipping point, n/45. The cost of the merchandise sold was $7,700. 26. Bird Company paid freight of $330 on April 24 purchase from Swan Company. Required: 1. Journalize the April transactions for Bird Company (the buyer). If an amount box does not require an entry, leave it blank. Date Account Debit Credit Apr. 2

Answer 1

Answer: Journal Entry for Bird (The Buyer) Date Account Apr 2 Merchandise Inventory Account Payable Credit Debit $ 14,400 $ 14,400 Apr 8 $ 29,000 Merchandise Inventory Account Payable $ 29,000 Apr 8 No entry Apr 12 $ 14,400 Accounts Payable Cash Merchandise Inventory $ 14,256 $ 144 Apr 18 $ 2,000 Cash Merchandise Inventory $ 2,000 Apr 23 $ 29,000 Accounts Payable Cash Merchandise Inventory $ 28,420 $ 580 Apr 24 $ 12,800 Merchandise Inventory Account Payable $ 12,800 Apr 26 $ 330 Merchandise Inventory Cash $ 330 Credit Journal Entry for (Swan Company) Seller Date Accounts Apr 2 Accounts Receivables Sales Revenue Cash Debit $ 14,915 $ 14,400 $ 515 $ 9,100 Cost of Goods Sold Merchandise Inventory $ 9,100 Apr 8 $ 29,000 Accounts Receivables Sales Revenue $ 29,000 $ 17,400 Cost of Goods Sold Merchandise Inventory $ 17,400 Apr 8 $ 740 Freight Outward Expenses Cash $ 740 Apr 12 Cash Sales Discount Accounts Receivables $ 14,771 $ 144 $ 14,915 $ 2,000 Apr 18 Sales Return and Allowances Cash $ 2,000 Apr 23 Cash Sales Discount Accounts Receivables $ 28,420 $ 580 $ 29,000 Apr 24 Accounts Receivables Sales Revenue $ 12,800 $ 12,800 $ 7,700 Cost of Goods Sold Merchandise Inventory $ 7,700 Apr 26 No entry