Question

profit for them Problem 5-2A je it for the month ended Juille su, LUIT. 5-2A Journal entries for merchandising activities-perpetual L03 eneral journal entries to record the following perpetual system merchandising transactions of on Company. Use a separate decat for each receivable and payable; for example, record the phase July 1 in Accounts Payable ones Company. Do the analysis component. 1 2 3 8 4 12 12 13 16 19 21 22 29 30 31 Purchased merchandise from Joner Company for $14,800 under credit terms of 1/15, 1/30, FOB factory. Sold merchandise to Terra Co. for $2.600 under credit terms of 2/10, 1/60, FOB shipping point. The merchandise had cost $1.950. Paid $450 for freight charges on the purchase of July 1. Sold merchandise that cost $3.825 for $5.100 cash. Purchased merchandise from Keene Co. for $9.100 under credit terms of 2/15, 1/60, FOB destination Received a $1,500 credit memo acknowledging the return of merchandise purchased on July 9. Received the balance due from Terra Co. for the credit sale dated July 2. Purchased office supplies from EastCo on credit. $960, 1/30. Paid the balance due to Jones Company. Sold merchandise that cost $2.850 to Urban Co. for $3,800 under credit terms of 2/15, 1/60, FOB shipping point. issued a $300 credit memo to Urban Co. for an allowance on goods sold on July 19. Received a debit memo from Urban Co. for an error that overstated the total invoice by $200. Paid Keene Co. the balance due. Received the balance due from Urban Co. for the credit sale dated July 19 Sold merchandise that cost $7.500 to Terra Co. for $10,000 under credit terms of 2/10, 1/60. FOB shipping point. haser for Belton Company, you are concerned that the purchase the accounts payable department.

Answer 1

In the books of Belton Company:

Date	Account Titles	Debit	Credit
		$	$
July 1	Merchandise Inventory	14,800
	Accounts Payable: Jones Company		14,800
July 2	Accounts Receivable: Terra Co.	2,600
	Sales		2,600
July 2	Cost of Goods Sold	1,950
	Merchandise Inventory		1,950
July 3	Merchandise Inventory	450
	Cash		450
July 8	Cash	5,100
	Sales		5,100
July 8	Cost of Goods Sold	3,825
	Merchandise Inventory		3,825
July 9	Merchandise Inventory	9,100
	Accounts Payable: Keene Co.		9,100
July 12	Accounts Payable: Keene Co.	1,500
	Merchandise Inventory		1,500
July 12	Cash	2,548
	Sales Discounts	52
	Accounts Receivable: Terra Co.		2,600
July 13	Office Supplies	960
	Accounts Payable: EastCo.		960
July 16	Accounts Payable: Jones Company	14,800
	Cash		14,800
July 19	Accounts Receivable: Urban Co.	3,800
	Sales		3,800
July 19	Cost of Goods Sold	2,850
	Merchandise Inventory		2,850
July 21	Sales Returns and Allowances	300
	Accounts Receivable: Urban Co.		300
July 22	Sales Returns and Allowances	200
	Accounts Receivable: Urban Co.		200
July 29	Accounts Payable: Keene Co.	7,600
	Cash		7,600
July 30	Cash	3,234
	Sales Discounts	66
	Accounts Receivable: Urban Co.		3,300
July 31	Accounts Receivable: Terra Co.	10,000
	Sales		10,000
July 31	Cost of Goods Sold	7,500
	Merchandise Inventory		7,500