Question

198 points Aug 1 Purchased merchandise from Arotek Company for $8.500 under credil terms of 1/10, 1/30, FOB destination, invoice dated August 1 5 Sold merchandise to Laird Corp. for $5.950 under credit terms of 2/10, 1/60, FOB destination, invoice dated August 5. The merchandise had cost $4248 8 Purchased merchandise from Waters Corporation for $7.800 under credit terms of 1/10. n/45. FOB shipping point, invoice dated August 8. The invoice showed that at Sheng's request, Waters paid the $240 shipping charges and added that amount to the bill. (Hint Discounts are not applied to freight and shipping charges.) 9 Paid $210 cash for shipping charges related to the August 5 sale to Laird Corp 10 Laird returned merchandise from the August 5 sale that had cost Sheng $708 and been sold for $992. The merchandise was restored to inventory 12 After negotiations with Waters Corporation concerning problems with the merchandise purchased on August 8, Sheng received a credit memorandum from Waters granting a price reduction of $1,178 14 At Arotek's request, Sheng paid $240 cash for freight charges on the August 1 purchase, reducing the amount owed to Arotek 15 Received balance due from Laird Corp. for the August 5 sale less the return on August 10. 18 Paid the amount due Waters Corporation for the August 8 purchase less the price reduction oranted 19 Sold merchandise to Tux Co. for $5,100 under credit terms of 1/10,n/30, FOB shipping point, invoice dated August 19. The merchandise had cost $3,539 22 Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Sheng sent Tux a $850 credit memorandum to resolve the issue. 29 Received Tux's cash payment for the amount due from the August 19 sale 30 Paid Arotek Company the amount due from the August 1 purchase. Prepare journal entries to record the above merchandising transactions of Sheng Company, which applies the perpetual inventory system View transaction list Journal entry worksheet Received balance due from Laird Corp. for the August 5 sale less the return on August 10. Note: Enter debits before credits Debit Credit Date Aug 15 General Journal Cash Sales discounts Accounts receivable-Laird Record entry Clear entry View general journal

Answer 1

Date	General Journal	Debit	Credit
Aug 15	Cash [4958*98%]	4859
	Sales discounts	99
	Accounts receivable- Laird [5950-992]		4958
Aug 18	Accounts Payable - Walters [7800+240-1178]	6862
	Merchandise Inventory [[7800-1178] *1%		66
	Cash [ bal.fig.]		6796
Aug 29	Cash [4250*99%]	4208
	Sales discounts	43
	Accounts receivable- Tux [5100-850]		4250
Aug 30	Accounts Payable - Arotek	8260
	Cash [8500-240]		8260