Question

Nov 4 Purchased $5,500 of merchandise on account from Salem Tire. Terms, 1/15, n/45, FOB shipping point. Salem Tire prepaid the $250 shipping cost and added the amount to the invoice. 7 Purchased $400 of supplies on account from Bargain Depot. Terms, 4/10, n/30, FOB destination. 9 Sold $900 (cost, $425) of merchandise on account to W. Furmick. Terms, 3/15, n/45, FOB destination. 11 Paid $75 freight charges to deliver goods to W. Furmick. 13 Returned $1,300 of the merchandise purchased on November 4 and received a credit. 15 Sold $1,450 (cost, $225) of merchandise to cash customers. 16 Paid for the supplies purchased on November 7. 18 Paid Salem Tire the amount due from the November 4 purchase in full. 20 W. Furmick returned $600 (cost, $300) of merchandise from the November 9 sale. 22 Purchased $2,500 of inventory. Paid cash. 23 Received payment in full from W. Furmick for the November 9 sale. 30 The refund liability for the month of November was estimated to be $220. The cost of goods estimated to be returned was $132.

Answer 1

5750 5750 11-7 AIL 40P To 400 Journal Entries Now-4 Merchandise Inventory To Accounts payable supplies To Accounts payable erg Account Receivables All To sales Cast of goods sold To Merchandise Inventory urll freight charges To cash 900 900 425 428 f 75 75 1.13 1300 Bills Receivables To Merchandise Inventory 1300 Cris Cash Al و Dr ( luso (4300 1 To sales 225 22.5 Ost of goods sold To Merchandise Inventory Accounts Payable to cash ur 16 yoo a 18 Accounts payable 57 so to casu 5695 To Machau dise Inventory SS [55 55000 - 55 10o

11-20 foo .boo 350 sales Redum To Bills Receivables Merchandise Inventory To Lost of goods Sold perchandise Inventory To casu 300 1.22 2 500 2 sec 1-23 cash to Account Receivables 900 900 u-30 220 220 Refund liability To Accounts payable Merchandise Inventory ) To lest of goods sold 132 132 calculation of Gross Profit Total sales - Sales Return Net sales 23 so (60o 1250 (218) 1532 (-) cost of goods sold* I Gross Profit 300 Coot of goods sold To Merchandise Inve 425 By Merchandise Invi To Merchandise Inv. 225 By Merchandise Inne By Bal.eld 132 218