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July 1 Purchased merchandise from Boden Company for $6,700 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $1,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $558. 3 Paid $125 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $2,000 for $2,400 cash. 9 Purchased merchandise from Leight Co. for $2,800 under credit terms of 2/15, 1/60, FOB destination, invoice dated July 9. 11 Received a $800 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9. 12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. 16 Paid the balance due to Boden Company within the discount period. 19 Sold merchandise that cost $1,000 to Art Co. for $1,500 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. 21 Issued a $250 credit memorandum to Art Co. for an allowance on goods sold on July 19. 24 Paid Leight Co the balance due after deducting the discount. 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount. 31 Sold merchandise that cost $5,500 to Creek Co. for $7,100 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Prepare journal entries to record the above merchandising transactions of Blink Company, which applies the perpetual inventory system. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 17 Purchased merchandise from Boden Company for $6,700 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. Note: Enter debits before credits. Date General Journal Debit Credit View transaction list Х 1 Purchased merchandise from Boden Company for $6,700 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $1,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. 3 Record the cost of merchandise sold, $558. 4 Paid $125 cash for freight charges on the purchase of July 1. 5 Record sale of merchandise for $2,400 cash. 6 Record cost of merchandise sold, $2,000. 7 Purchased merchandise from Leight Co. for $2,800 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. 8 Received a $800 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9. 9 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. 10 Paid the balance due to Boden Company within the discount period. 11 Sold merchandise to Art Co. for $1,500 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19 12 Record cost of merchandise sold, $1,000. 13 Issued a $250 credit memorandum to Art Co. for an allowance on goods sold on July 19. 14 Paid Leight Co. the balance due after deducting the discount. 15 Received the balance due from Art Co. for the invoice dated July 19, net of discount. 16 Sold merchandise to Creek Co. for $7,100 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. 17 Record cost of merchandise sold, $5,500.

Answer 1

Blink Company Journal Enteries Date Particulars Jul-01 Merchandise inventory Accounts payable-Boden Debit in $ Credit in $ 6700 6700 1000 Jul-02 Accounts receivable-Creek Sales 1000 558 Cost of goods sold Merchandise inventory 558 125 Jul-03 Merchandise inventory Cash 125 2400 Jul-08 Cash Sales 2400 2000 Cost of goods sold Merchandise inventory 2000 2800 Jul-09 Merchandise inventory Accounts payable-Leight 2800 800 Jul-11 Accounts payable-Leight Merchandise inventory 800 980 20 Jul-12 Cash Sales discounts Accounts receivable-Creek 1000 x 2% = 20 1000 6700 134 Jul-16 Accounts payable-Boden Merchandise inventory Cash 6700 x 2% = 134 6566 1500 Jul-19 Accounts receivable-Art Sales 1500 1000 Cost of goods sold Merchandise inventory 1000 250 Jul-21 Sales returns and allowances Accounts receivable-Art 250 2000 40 Jul-24 Accounts payable-Leight Merchandise inventory Cash 2800-800 = 2000 x 2% = 40 1960 Jul-30 1225 25 Cash Sales discounts Accounts receivable-Art 1500 - 250 = 1250 x 2% = 25 1250 Jul-31 7100 Accounts receivable-Creek Sales 7100 5500 Cost of goods sold Merchandise inventory 5500