Question

*Problem 5-11A
Journalizing purchase and s
transactions

Singh Distributing Company, which uses the periodic inventory system, engaged in the following transactions during May of the current year:
inventory system

may 3 -Purchased office supplies for cash, $22,000

may 7-Purchased inventory on credit terms of 3/10, net eom, $160,000.

may 8-Returned 10 percent of the inventory purchased on May 7. It was not the inventory ordered

may 10-Sold goods for cash, $36,400.

may 13-Sold inventory on credit terms of 2/15, n/45 for $60,300, less $8,800 quantity discount offered to customers who purchase in large quantities.

may 16-Paid the amount owed on account from the purchase of May 7

may 17-Received wrong-sized inventory returned from May 13 sale, $3,200, which is the net amount after the quantity discount.

may 18-Purchased inventory of $76,000 on account. Payment terms were 2/10,net 30.

may 26-Paid supplier for goods purchased on May 18

may 28-Received cash in full settlement of the account from the customer whopurchased inventory on May 13.

may 29-Purchased inventory for cash, $26,000, less a quantity discount of $2,200,and paid freight charges of $600.

Required Journalize the preceding transactions on the books of Singh Distributing company

Answer 1

Journal entries
Date	General Journal	Debit	Credit
May 03	Office supplies	22,000
	Cash		22,000
	(To record Purchased office supplies for cash.)
May 07	Purchase	160,000
	Account Payable		160,000
	(To record Purchased inventory on credit.)
May 08	Account Payable	16,000
	Purchase return		16,000
	(To record Returned 10 percent of the inventory purchased on May 7.) (160000*10%)
May 10	Cash	36,400
	Sales Revenue		36,400
	(To record sold goods for cash.)
May 13	Account Receivable	51,500
	Sales Revenue		51,500
	(To record sold inventory on credit terms .) (60300-8800)
May 16	Account Payable	144,000
	Purchase Discount (or also known as Discount received) (144000*3%)		4,320
	Cash		139,680
	(To record Paid the amount owed on account from the purchase of May 7.) (160000-16000)
May 17	Sales returns and allowances	3,200
	Account Receivable		3,200
	(To record Received wrong-sized inventory returned from May 13 sale.)
May 18	Purchase	76,000
	Account Payable		76,000
	(To record Purchased inventory on credit.)
May 26	Account Payable	76,000
	Purchase Discount (or also known as Discount received) (76000*2%)		1,520
	Cash		74,480
	(To record Paid supplier for goods purchased on May 18.)
May 28	Cash	47,334
	Sales discount (48300*2%)	966
	Account Receivable		48,300
	(To record Received cash in full settlement of the account from the customer who purchased inventory on May 13.) (51500-3200)
May 29	Purchase (26000-2200)	23,800
	Freight inward	600
	Cash		24,400
	(To record Purchased inventory on cash.)