Problem

Journalizing purchase and sale transactions perpetual system [15-20 min]The following tran...

Journalizing purchase and sale transactions perpetual system [15-20 min]

The following transactions occurred between Belvidere Pharmaceuticals and D&S, the pharmacy chain, during July of the current year:

Jul 6

D&S purchased $12,000 of merchandise from Belvidere on credit terms of 3/10, n/30, FOB shipping point. Separately, D&S paid a $200 bill for freight in. These goods cost Belvidere $3,600.

10

D&S returned $3,000 of the merchandise purchased on July 6. Belvidere accounted for the sales return and placed the goods back in inventory (Belvidere’s cost, $1,200).

15

D&S paid $6,000 of the invoice amount owed to Belvidere for the July 6 purchase, less the discount.

27

D&S paid the remaining amount owed to Belvidere for the July 6 purchase.

Requirements

1. Journalize these transactions on the books of D&S.


2. Journalize these transactions on the books of Belvidere Pharmaceuticals.

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