Question

Check my work Part 1: Consider the following perpetual system merchandising transactions of Belton Company. Use a separate account for each receivable and payable; for example, record the sale on June 1 in Accounts Receivable-Avery & Wiest. June 1 Sold merchandise to Avery & Wiest for $10,000; terms 1/5, n/15, FOB destination (cost of sales $7,150). 2 Purchased $5,400 of merchandise from Angolac Suppliers; terms 3/10, n/20, FOB shipping point. 4 Purchased merchandise inventory from Bastille Sales for $12,400; terms 3/15, n/45, FOB Bastille Sales. Sold merchandise to Gelgar for $12,000; terms 1/5, n/15, FOB destination (cost of sales 5 $8,200) 6 Collected the amount owing from Avery & Wiest regarding the June 1 sale. 12 Paid Angolac Suppliers for the June 2 purchase. 20 collected the amount owing from Gelgar regarding the June 5 sale. 30 Paid Bastille Sales for the June 4 purchase. Prepare General Journal entries to record the above transactions.

Answer 1

Part 1

In the books of Belton Company

             General Journal

Date	Account Title	Debit ($)	Credit ($)
June 1	Accounts Receivable – Avery and Wiest A/C         DR.	10,000
	To Sales Revenue A/C		10,000
	(Being sold merchandise to Avery and Wiest )
June 2	Merchandise A/C                                                         DR.	5,400
	To Accounts Payable – Angolac Suppliers A/C		5,400
	(Being purchased merchandise from Angolac Suppliers)
June 4	Merchandise A/C                                                         DR.	12,400
	To Accounts Payable – Bastile Sales A/C		12,400
	(Being purchased merchandise from Bastile Sales)
June 5	Accounts Receivable – Gelgar A/C                       DR.	12,000
	To Sales Revenue A/C		12,000
	(Being sold merchandise to Gelgar)
June 6	Cash A/C                                                                        DR.	9,900
	Discount allowed A/C                                                 DR.	100
	To Accounts Receivable – Avery and Wiest A/C		10,000
	(Being collected the amount owing from Avery and Wiest )
June 12	Accounts Payable – Angolac Suppliers A/C          DR.	5,400
	To Cash A/C		5,238
	To Discount Received A/C		162
	(Being paid Angolac Suppliers)
June 20	Cash A/C                                                                        DR.	12,000
	To Accounts Receivable – Gelgar A/C		12,000
	(Being collected the amount owing from Gelgar)
June 30	Accounts Payable – Bastille Sales A/C                     DR.	12,400
	To Cash A/C		12,400
	(Being paid Bastille Sales)

Part 2

a. Net Sales: $ 22,000 ($ 10,000+ $ 12,000)

b. Cost of goods sold: $ 15,350 ($ 7,150+ $ 8,200)

c. Gross profit from sales = $ 6,650 ($ 22,000 - $ 15,350)