Question

Sep 3 Purchased merchandise inventory on account from Shallin ​Wholesalers, $ 5 comma 200. Terms 1​/15, ​n/EOM, FOB shipping point.

4 Paid freight bill of $ 65 on September 3 purchase.

4 Purchase merchandise inventory for cash of $ 2 comma 200.

6 Returned $ 1 comma 200 of inventory from September 3 purchase.

8 Sold merchandise inventory to Hillis ​Company, $ 5 comma 500​, on account. Terms 1​/15, ​n/35. Cost of​ goods, $ 2 comma 310.

9 Purchased merchandise inventory on account from Taylor ​Wholesalers, $ 9 comma 500. Terms 2​/10, ​n/30, FOB destination.

10 Made payment to Shallin Wholesalers for goods purchased on September ​3, less return and discount.

12 Received payment from Hillis ​Company, less discount.

13 After​ negotiations, received a $ 100 allowance from Taylor Wholesalers.

15 Sold merchandise inventory to Jeter ​Company, $ 3 comma 200​, on account. Terms​ n/EOM. Cost of​ goods, $ 1 comma 280.

22 Made​ payment, less​ allowance, to Taylor Wholesalers for goods purchased on September 9.

23 Jeter Company returned $ 600 of the merchandise sold on September 15. Cost of​ goods, $ 240.

25 Sold merchandise inventory to Smecker for $ 2 comma 000 on account that cost $ 880. Terms of 3​/10, ​n/30 was​ offered, FOB shipping point. As a courtesy to Smecker​, $ 50 of freight was added to the invoice for which cash was paid by Water Works.

29 Received payment from Smecker​, less discount.

30 Received payment from Jeter ​Company, less return.

Journalize the following transactions that occurred in

SeptemberSeptember

20182018

for

Water WorksWater Works​,

assuming the perpetual inventory system is being used. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name.

Water WorksWater Works

estimates sales returns at the end of each month.

Answer 1

1:- Journal Entries

Sep 3

Merchandise Inventory A/c DR $5,200

        To Shallin Wholesalers A/c $5,200

Sep 4

     Delivery Expenses A/c DR $65

              To Cash A/c $65

   Merchandise Inventory A/c DR $2,200

             To Cash A/c $2,200

    Sep 6

     Shallin Wholesalers A/c DR $1,200

          To Merchandise Inventory A/c $1,200

Sep 8

  Hillis Company A/c Dr $5,500

            To sales A/c $5,500  

  Cost of goods sold A/c DR $2,310

To Merchandise Inventory A/c $2,310

  Sep 9

Merchandise Inventory A/c DR $9,500

           To Taylor Wholesalers A/c $9,500

Sep 10

Shallin Wholesalers A/c DR $4,000 ( 5,200-1,200-40)

To Bank A/c $3,960

To Discount A/c $ 40([5,200-1,200]*1%)

Sep 12   

Bank A/c DR $5,445 (5,500-[5,500*1%])

Discount A/c DR $55

To Hillis Company A/c $5,500

Sep 13

Allowance A/c DR $100

To Taylor Wholesalers A/c $100

Sep 15

Jeter Company A/c DR $3,200

To sales A/c $3,200

Cost of goods sold A/c DR $1,280

To Merchandise Inventory A/c $1,280

Sep 22

Taylor Wholesalers A/c DR $9,400

   To Bank A/c $9,400

Sep 23

   Sales Return A/c DR $600

    To Jeter Company A/c $600

Merchandise Inventory A/c DR $240

   To Cost of goods sold A/c $240

Sep 25

Smecker A/c Dr $2,050(2000+50)

To Sales A/c $2,000

          To Delivery Expenses A/c $50

Cost of goods sold A/c DR $880

To Merchandise Inventory A/c $880

Delivery Expenses A/c DR $50

    To Cash A/c $ 50

Sep 29

Bank A/c DR $1,990 (2050-[2000*3%])

Discount A/c DR $60

To Smecker A/c $2,050

Sep 30

Bank A/c DR $2,600 (3,200-600)

To Jeter Company A/c $2,600

2. Sales return at the end of the month is $ 600.