Question

journalize the following transactions that occurred in September 2018 for Red Hawk, assuming the perpetual inventory system is being used. Identify each accounts payable and accounts receivable with the vendor or customers names. Red Hawk estimates sales returns at the end of each month.

i More Info Sep. 3 Purchased merchandise inventory on account from Simmon Wholesalers, $4,000. Terms 3/15, n/EOM, FOB shipping point. 4 Paid freight bill of $75 on September 3 purchase. 4 Purchase merchandise inventory for cash of $1,500. 6 Returned $1,200 of inventory from September 3 purchase. 8 Sold merchandise inventory to Hillis Company, $6,400, on account. Terms 3/15, n/35. Cost of goods, $2,624. 9 Purchased merchandise inventory on account from Tripp Wholesalers, $9,000. Terms 2/10, n/30, FOB destination. 10 Made payment to Simmon Wholesalers for goods purchased on September 3, less return and discount. 12 Received payment from Hillis Company, less discount. 13 After negotiations, received a $200 allowance from Tripp Wholesalers. 15 Sold merchandise inventory to Jackson Company, $3,000, on account. Terms n/EOM. Cost of goods, $1,350. 22 Made payment, less allowance, to Tripp Wholesalers for goods purchased on September 9. 23 Jackson Company returned $700 of the merchandise sold on September 15. Cost of goods, $315. Sold merchandise inventory to Sciavone for $1,700 on account that cost $697. Terms of 1/10, n/30 was offered, FOB shipping point. As a courtesy to Sciavone, $50 of freight was added to the invoice for which cash was paid by Red Hawk. 29 Received payment from Sciavone, less discourlt. 30 Received payment from Jackson Company, less return. Print Done

Answer 1

The journal entries are recorded based on accounting rules in which all expenses, assets, losses are debited for increase and revenue, liabilities, equity, gain are credited for increase
Date	General Journal	Debit	Credit
3-Sep	Merchandise inventory	$4,000
	Accounts payable - Simmon Wholesalers		$4,000
	(To record inventory purchased on account)
4-Sep	Merchandise inventory	$75
	Cash		$75
	(To record freight charges paid)
4-Sep	Merchandise inventory	$1,500
	Cash		$1,500
	(To record inventory purchased for cash)
6-Sep	Accounts payable - Simmon Wholesalers	$1,200
	Merchandise inventory		$1,200
	(To record inventory returned)
8-Sep	Accounts receivable - Hillis company	$6,400
	Sales revenue		$6,400
	(To record sale of goods)
	Cost of goods sold	$2,624
	Merchandise inventory		$2,624
	(To record cost of goods sold)
9-Sep	Merchandise inventory	$9,000
	Accounts payable - Tripp Wholesalers		$9,000
	(To record inventory purchased on account)
10-Sep	Accounts payable - Simmon Wholesalers (4000-1200)	$2,800
	Merchandise inventory (2800*3%)		$84
	Cash (2800-84)		$2,716
	(To record payment to Simmon Wholesalers)
12-Sep	Cash (6400-192)	$6,208
	Sales discounts (6400*3%)	$192
	Accounts receivable - Hillis company		$6,400
	(To record cash collected from customer)
13-Sep	Accounts payable - Tripp Wholesalers	$200
	Merchandise inventory		$200
	(To record allowance received from tripp)
15-Sep	Accounts receivable - Jackson company	$3,000
	Sales revenue		$3,000
	(To record sale of goods)
	Cost of goods sold	$1,350
	Merchandise inventory		$1,350
	(To record cost of goods sold)
22-Sep	Accounts payable - Tripp Wholesalers (9000-200)	$8,800
	Cash		$8,800
	(To record cash payment to supplier)
23-Sep	Sales return and allowance	$700
	Accounts receivable - Jackson company		$700
	(To record sales return from customer)
	Merchandise inventory	$315
	Cost of goods sold		$315
	(To record reversal of cost of goods sold)
25-Sep	Accounts receivable - Sciavone	$1,700
	Sales revenue		$1,650
	Cash		$50
	(To record sale of goods)
	Cost of goods sold	$697
	Merchandise inventory		$697
	(To record cost of goods sold)
29-Sep	Cash (1700-17)	$1,683
	Sales discounts (1700*1%)	$17
	Accounts receivable - Sciavone		$1,700
	(To record cash collected from customer)
30-Sep	Cash (3000-700)	$2,300
	Accounts receivable - Jackson company		$2,300
	(To record cash collected from customer)