Journal Entries for the following transactions are recorded along with the narration.
Journal Entries for the month July
Date | Particulars | Debit Amount | Credit Amount |
July1 | Merchandise Inventory A/c Dr. | 2,700 | |
To Accounts Payable | 2,700 | ||
(Being purchases recorded) | |||
July 02 | Freight Charges A/c Dr. | $140 | |
To Cash a/c | $140 | ||
(Being freight charges paid ) | |||
July 04 | Accounts Payable A/c Dr. | 270 | |
To Merchandise Inventory : Purchase Returns | 270 | ||
July 10 | Accounts Receivable A/c Dr. (45 units * $55 per unit) | 2475 | |
To Revenues A/c (45 units * $ 1 per unit) | 45 | ||
To Merchandise Inventory (45 units $ 54 per unit) | 2,430 | ||
(Being sales and cost of goods sold recorded.) | |||
July 12 | Merchandise Inventory :Sales Returns A/c Dr. | 275 | |
To Accounts Receivable | 275 | ||
(Sales returns recorded) | |||
July 15 | Merchandise Inventory A/c Dr. | 3090 | |
To Accounts Payable | 3090 | ||
(Being purchases recorded) | |||
July 18 | Freight Charges A/c Dr. | 150 | |
To Cash A/c | 150 | ||
(Frieght Charges paid) | |||
July 21 |
Accounts Receivables A/c Dr. (54 units * $55 per unit) |
2970 | |
To Revenue A/c (54 units 8 $1 per unit) | 54 | ||
To Merchandise Inventory (54 units * $54 per unit | 2916 | ||
(Sales made) | |||
July 23 | Merchandise Inventory : Sales Return A/c Dr. | 110 | |
To Accounts Reecivables | 110 | ||
(Sales returns recorded) | |||
July 30 | Accounts Payable A/c Dr. | 2,430 | |
To Cash A/c | 2,430 | ||
(Paid to trunk manufacturers fter purchase returns) | |||
July 31 | Cash A/c Dr. | 2200 | |
To Accounts Receivables | 2,200 | ||
(Payment received from Satchel World) |
July 1 Purchased 50 suitcases on account for $54 each from Trunk Manufacturers, terms n/30, FOB...
Whispering Winds Warehouse distributes suitcases to retail stores and extends credit terms of n/30 to all of its customers. Whispering Winds Warehouse uses a periodic inventory system and at the end of June its inventory consisted of 26 suitcases purchased at $42 each. During the month of July, the following merchandising transactions occurred: July 1 Purchased 50 suitcases on account for $42 each from Trunk Manufacturers, terms n/30, FOB destination. 2 The correct company paid $135 freight on the July...
Bridgeport Warehouse distributes suitcases to retail stores and extends credit terms of n/30 to all of its customers. Bridgeport Warehouse uses a periodic inventory system the earnings approach. At the end of June its inventory consisted of 41 suitcases purchased at $36 each. During the month of July, the following merchandising transactions occurred: July 1 Purchased 50 suitcases on account for $36 each from Trunk Manufacturers, terms n/30, FOB destination. 2 The correct company paid $155 freight on the July...
QUESTION 1 Sansomite Sdn. Bhd. distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of June, Sansomite's inventory consisted of 40 suitcases purchased at RM 30 each. During the month of July, the following merchandising transactions occurred. July. July. July. July July July. Purchased 60 suitcases on account for RM 30 each from Trunk Manufacturers Sdn. Bhd., terms 2/10, n/30. 3 Sold 40 suitcases on account to Satchel World...
July 1 Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $500. 3 Paid $125 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $1,300 for $1,700 cash. 9 Purchased merchandise from Leight Co. for $2,200 under...
On June 10, Crane Company purchased $10,000 of merchandise on account from Blue Company, FOB shipping point, terms 2/10, n/30. Crane pays the freight costs of $610 on June 11. Damaged goods totaling $350 are returned to Blue for credit on June 12. The fair value of these goods is $75. On June 19, Crane pays Blue Company in full, less the purchase discount. Both companies use a perpetual inventory system. Exercise 5-04 a-b (Part Level Submission) (Video) On June...
On June 10, Crane Company purchased $10,000 of merchandise on account from Blue Company, FOB shipping point, terms 2/10, n/30. Crane pays the freight costs of $610 on June 11. Damaged goods totaling $350 are returned to Blue for credit on June 12. The fair value of these goods is $75. On June 19, Crane pays Blue Company in full, less the purchase discount. Both companies use a perpetual inventory system. Exercise 5-04 a-b (Part Level Submission) (Video) On June...
July 1 Purchased merchandise from Boden Company for $6,500 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $542. 3 Paid $110 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $1,800 for $2,200 cash. 9 Purchased merchandise from Leight Co. for $3,000 under...
On June 10, Wildhorse Company purchased $8,500 of merchandise on account from Swifty Company, FOB shipping point terms 2/10, 1/30. Wildhorse pays the freight costs of $570 on June 11. Damaged goods totaling $450 are returned to Swifty for credit on June 12. The fair value of these goods is $75. On June 19, Wildhorse pays Swifty Company in fullless the purchase discount. Both companies use a perpetual inventory system. Prepare separate entries for each transaction for Swifty Company. The...
Nov 4 Purchased $5,700 of merchandise on account from Goodsale Tire. Terms, 1/15, n/45, FOB shipping point. Goodsale Tire prepaid the $75 shipping cost and added the amount to the invoice. 7 Purchased $500 of supplies on account from Office Sale. Terms, 3/10, n/30, FOB destination. 9 Sold $1,400 (cost, $400) of merchandise on account to F. Smith. Terms, 2/15, n/45, FOB destination. 11 Paid $40 freight charges to deliver goods to F. Smith. 13 Returned $1,100 of the merchandise...
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...