1. YBM Company completed the following transactions in June of 2018 June 1 Purchased Supplies on Account, $740 June 3 Purchased inventory on account from Dino Corp., $5,000, terms, 3/15, n/30 June 7 Sold goods for cash, $2,000 (Cost $1,100) Found $200 worth of inventory purchased on June 3 to be damaged. Returned the inventory June 10 Sold goods on account to Fred Co., $1,000, terms 2/10, n/30. (Cost $550) June 13 June 16 Paid for Inventory purchased on June 3 minus the return and the discount. June 20 Fred Co. was given an allowance of $150 for damaged merchandise from sale of June 13. June 22 Received payment in full from Fred Co. June 24 Purchased Inventory on account from Wilma Co., $4,200 plus freight charges of $300. June 28 Returned defective merchandise of $325 from purchase of June 24. Required: a. Journalize above entries for YBM Corp.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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**YBM Company Transactions - June 2018**

1. **June 1**: Purchased Supplies on Account for $740.

2. **June 3**: Purchased Inventory on Account from Dino Corp., amounting to $5,000. Payment terms were 3/15, n/30.

3. **June 7**: Sold Goods for Cash totaling $2,000 (Cost of goods sold was $1,100).

4. **June 10**: Discovered $200 worth of Inventory, bought on June 3, was damaged. Returned the damaged inventory.

5. **June 13**: Sold Goods on Account to Fred Co. for $1,000, with terms of 2/10, n/30. The cost of goods sold was $550.

6. **June 16**: Paid for Inventory purchased on June 3, adjusted for the return and applicable discount.

7. **June 20**: Granted Fred Co. an allowance of $150 for damaged merchandise from the sale on June 13.

8. **June 22**: Received Full Payment from Fred Co.

9. **June 24**: Purchased Inventory on Account from Wilma Co. for $4,200, with an additional freight charge of $300.

10. **June 28**: Returned Defective Merchandise worth $325 from the purchase on June 24.

**Required:**

a. **Journalize the above entries for YBM Corp.**
Transcribed Image Text:**YBM Company Transactions - June 2018** 1. **June 1**: Purchased Supplies on Account for $740. 2. **June 3**: Purchased Inventory on Account from Dino Corp., amounting to $5,000. Payment terms were 3/15, n/30. 3. **June 7**: Sold Goods for Cash totaling $2,000 (Cost of goods sold was $1,100). 4. **June 10**: Discovered $200 worth of Inventory, bought on June 3, was damaged. Returned the damaged inventory. 5. **June 13**: Sold Goods on Account to Fred Co. for $1,000, with terms of 2/10, n/30. The cost of goods sold was $550. 6. **June 16**: Paid for Inventory purchased on June 3, adjusted for the return and applicable discount. 7. **June 20**: Granted Fred Co. an allowance of $150 for damaged merchandise from the sale on June 13. 8. **June 22**: Received Full Payment from Fred Co. 9. **June 24**: Purchased Inventory on Account from Wilma Co. for $4,200, with an additional freight charge of $300. 10. **June 28**: Returned Defective Merchandise worth $325 from the purchase on June 24. **Required:** a. **Journalize the above entries for YBM Corp.**
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