August 1) Purchased merchandise from Griffin Company for $7,700 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. August 5) Sold merchandise to Clinton Corporation for $5,300 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. August 5) The merchandise sold to Clinton had cost $3,200. August 8) Purchased merchandise from Parker Corporation for $5,440 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. August 9) Paid $325 cash for shipping charges related to the August 5 sale to Clinton Corporation August 10) Clinton returned merchandise from the August 5 sale that had sold for $200. August 10) The cost of the merchandise returned by Brown's was $100. The merchandise was restored to inventory. August 12) After negotiations with Parker Corporation concerning problems with the purchases on August 8, Brown's received a credit memorandum from Parker granting a price reduction of $600 off the $5,440 of goods purchased. August 14) At Griffin's request, Brown's paid $300 cash for freight charges on the August 1 purchase, reducing the amount owed to Griffin. August 15) Received balance due from Clinton Corporation for the August 5 sale less the return on August 10. August 18) Paid the amount due Parker Corporation for the August 8 purchase less the price allowance from August 12. August 19) Sold merchandise to Allen Company for $3,800 under credit terms of n/10, FOB shipping point, invoice dated August 19. August 19) The cost of the merchandise sold merchandise to Allen was $1,900. Impact on income Increase (decrease) to income
August 1) Purchased merchandise from Griffin Company for $7,700 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. August 5) Sold merchandise to Clinton Corporation for $5,300 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. August 5) The merchandise sold to Clinton had cost $3,200. August 8) Purchased merchandise from Parker Corporation for $5,440 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. August 9) Paid $325 cash for shipping charges related to the August 5 sale to Clinton Corporation August 10) Clinton returned merchandise from the August 5 sale that had sold for $200. August 10) The cost of the merchandise returned by Brown's was $100. The merchandise was restored to inventory. August 12) After negotiations with Parker Corporation concerning problems with the purchases on August 8, Brown's received a credit memorandum from Parker granting a price reduction of $600 off the $5,440 of goods purchased. August 14) At Griffin's request, Brown's paid $300 cash for freight charges on the August 1 purchase, reducing the amount owed to Griffin. August 15) Received balance due from Clinton Corporation for the August 5 sale less the return on August 10. August 18) Paid the amount due Parker Corporation for the August 8 purchase less the price allowance from August 12. August 19) Sold merchandise to Allen Company for $3,800 under credit terms of n/10, FOB shipping point, invoice dated August 19. August 19) The cost of the merchandise sold merchandise to Allen was $1,900. Impact on income Increase (decrease) to income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:August 1) Purchased merchandise from Griffin Company for
$7,700 under credit terms of 1/10, n/30, FOB destination,
invoice dated August 1.
August 5) Sold merchandise to Clinton Corporation for
$5,300 under credit terms of 2/10, n/60, FOB destination,
invoice dated August 5.
August 5) The merchandise sold to Clinton had cost $3,200.
August 8) Purchased merchandise from Parker Corporation
for $5,440 under credit terms of 1/10, n/45, FOB shipping
point, invoice dated August 8.
August 9) Paid $325 cash for shipping charges related to
the August 5 sale to Clinton Corporation
August 10) Clinton returned merchandise from the August 5
sale that had sold for $200.
August 10) The cost of the merchandise returned by
Brown's was $100. The merchandise was restored to
inventory.
August 12) After negotiations with Parker Corporation
concerning problems with the purchases on August 8,
Brown's received a credit memorandum from Parker granting
a price reduction of $600 off the $5,440 of goods purchased.
August 14) At Griffin's request, Brown's paid $300 cash for
freight charges on the August 1 purchase, reducing the
amount owed to Griffin.
August 15) Received balance due from Clinton Corporation
for the August 5 sale less the return on August 10.
August 18) Paid the amount due Parker Corporation for the
August 8 purchase less the price allowance from August 12.
August 19) Sold merchandise to Allen Company for $3,800
under credit terms of n/10, FOB shipping point, invoice dated
August 19.
August 19) The cost of the merchandise sold merchandise
to Allen was $1,900.
Impact on income
Increase
(decrease) to
income
Transcribed Image Text:August 22) Allen requested a price reduction on the August
19 sale because the merchandise did not meet
specifications. Brown's sent Allen a $400 credit
memorandum toward the $3,800 invoice to resolve the issue.
August 29) Received Allen's cash payment for the amount
due from the August 19 sale less the price allowance from
August 22.
August 30) Paid Griffin Company the amount due from the
August 1 purchase.
Total income
$
0
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