Question

EX 6-8 Purchase-related transactions 

Journalize entries for the following related transactions of Manville Heating& Air Company: 

a. Purchased $90,000 of merchandise from Wright Co. on account, terms 2/10, n/30. 

b. Paid the amount owed on the invoice within the discount period. 

c. Discovered that $18,000 of the merchandise purchased in (a) was defective and re- turned items, receiving credit for $17,640 [$18,000-($18,000 2%). 

d. Purchased $10,000 of merchandise from Wright Co. on account, terms n/30. 

e. Received a refund from Wright Co. for return in (c) less the purchase in (d). 

EX 6-9 Sales-related transactions, including the use of credit cards 

Journalize the entries for the following transactions: 

a. Sold merchandise for cash, $116,300. The cost of the merchandise sold was $72,000. 

b. Sold merchandise on account, $755,000. The cost of the merchandise sold was $400,000. 

c. Sold merchandise to customers who used MasterCard and VISA, $1,950,000. The cost OBJ. 2 of the merchandise sold was $1,250,000. 

EX 6-10 Sales-related transactions 

After the amount due on a sale of $28,000, terms 2/10, n/eom, is received from a customer within the discount period, the seller consents to the return of the entire shipment fora cash refund. The cost of the merchandise returned was $16,800. (a) What is the amount of the refund owed to the customer? (b) Journalize the entries made by the seller to record the return and the refund.

EX 6-11 Sales-related transactions 

The debits and credits for four related entries for a sale of $15,000, terms 1/10, n/30, are presented in the following T accounts. Describe each transaction. 

Answer 1

Wright Co. Ex 6-8 Journal Enteries Event Particulars Debit in $ Credit in $ a Inventory a/c Dr To Accounts Payable 90000 Inven urchased on account b. Accounts Payable a/c Dr 90000 To Inven To Cash 1800 Accounts Payable paid off) 90000 x2% 1800 c. Cash a/c Dr. 17640 To Invento Inventory returned 17640 Ex 6-9 Journal Enteries EventParticulars Debit in $ Credit in$ a Cash a/c Dr 116300 To Sales Sales made in cash 116300 Cost of goods sold a/c Dr To Invento 72000 (Cost of goods sold recorded) b. Accounts Receivable a/c Dr 755000 To Sales Sales made in cash 755000 Cost of goods sold a/c To Invento Dr 400000 Cost of sold recorded c. Accounts Receivable - Master Card a/c Dr.1950000 To Sales 1950000 (Sales made in Credit Card) Cost of goods sold a/cDr 1250000 To Invento Cost of goods sold recorded Ex 6-10 Journal Enteries Event Particulars Debit in $ Credit in S Sales Return a/c To Cash a Dr 27440 27440 Goods returned by customer 28000 x 0.98 27440- Refund owed to customer Inventory a/c 16800 To Cost of goods sold 16800 (Inventory returned recorded)

Ex 6 - 11
a.Sold Merchandise on account $15000 terms 1/10 , n/30 .The cost of Merchandise sold was $8800
b.Goods sold of value $900 and cost $575 returned by customer
c.Amount received from customer in discount period.