Concord Company made a purchase of merchandise on credit from Pharoah Company on August 8, for $8300, terms 3/10, n/30. OnAugust 17, Concord makes the appropriate payment to Pharoah. The entry on August 17 for Concord Company is:Accounts Payable8300Purchase Returns andAllowances249Cash8051Accounts Payable8300Cash8300Accounts Payable8300Inventory249Cash8051Accounts Payable8051Cash8051

Step 1: Understand the Purchase TermsStep 2: Calculate the Discount AmountStep 3: Calculate the…

Answered: Concord Company made a purchase of…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 5EA: Review the following transactions and prepare any necessary journal entries for Tolbert Enterprises....

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Review the following transactions and prepare any necessary journal entries for Tolbert Enterprises. A. On April 7, Tolbert Enterprises contracts with a supplier to purchase 300 water bottles for their merchandise inventory, on credit, for $10 each. Credit terms are 2/10, n/60 from the invoice date of April 7. B. On April 15, Tolbert pays the amount due in cash to the supplier.
Toby Company had the following sales transactions for March: Mar. 6Sold merchandise on account to Osbourne, Inc., invoice no. 1128, 563.17. 14Sold merchandise on account to Ortiz Company, invoice no. 1129, 823.50. 20Sold merchandise on account to Bailey Corporation, invoice no. 1130, 2,350.98. 24Sold merchandise on account to Shannon Corporation, invoice no. 1131, 1,547.07. Assume that Toby Company had beginning balances on March 1 of 3,569.80 (Sales 411) and 2,450.39 (Accounts Receivable 113). Record the sales of merchandise on account in the sales journal (page 24) and then post to the general ledger.
Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc. A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3. B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8. C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction. D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.
Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is sold on account for 300 plus 3% sales tax, with 2/10, n/30 cash discount terms. (b) Part of the merchandise sold in transaction (a) for 70 plus sales tax is returned for credit. (c) The balance on account for the merchandise sold in transaction (a) is paid in cash within the discount period.
Gomez Company sells electrical supplies on a wholesale basis. The balances of the accounts as of April 1 have been recorded in the general ledger in your Working Papers and CengageNow. The following transactions took place during April of this year: Apr. 1 Sold merchandise on account to Myers Company, invoice no. 761, 570.40. 5 Sold merchandise on account to L. R. Foster Company, invoice no. 762, 486.10. 6 Issued credit memo no. 50 to Myers Company for merchandise returned, 40.70. 10 Sold merchandise on account to Diaz Hardware, invoice no. 763, 293.35. 14 Sold merchandise on account to Brooks and Bennett, invoice no. 764, 640.16. 17 Sold merchandise on account to Powell and Reyes, invoice no. 765, 582.12. 21 Issued credit memo no. 51 to Brooks and Bennett for merchandise returned, 68.44. 24 Sold merchandise on account to Ortiz Company, invoice no. 766, 652.87. 26 Sold merchandise on account to Diaz Hardware, invoice no. 767, 832.19. 30 Issued credit memo no. 52 to Diaz Hardware for damage to merchandise, 98.50. Required 1. Record these sales of merchandise on account in the sales journal. If using Working Papers, use page 39. Record the sales returns and allowances in the general journal. If using Working Papers, use page 74. 2. Immediately after recording each transaction, post to the accounts receivable ledger. 3. Post the amounts from the general journal daily. Post the sales journal amount as a total at the end of the month: Accounts Receivable 113, Sales 411, Sales Returns and Allowances 412. 4. Prepare a schedule of accounts receivable. Compare the balance of the Accounts Receivable controlling account with the total of the schedule of accounts receivable.
RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of inventory on credit with payment terms of 1/15, net 45. Using the net price method, prepare journal entries to record Johnsons purchases on October 23 and the subsequent payment on October 31. Using the information from RE7-8, prepare journal entries to record Johnsons purchase on October 23 and the subsequent payment on November 30.
Record the following transactions in general journal form for Ford Education Outfitters and Romero Textbooks, Inc. a. Ford Educational Outfitters bought merchandise on account from Romero Textbooks, Inc., invoice no. 10594, 1,875.34; terms net 30 days; FOB destination. Romero Textbooks, Inc., paid 93.80 for shipping. b. Ford Education Outfitters received credit memo no. 513A from Romero Textbooks, Inc., for merchandise returned, 135.78.
Concord Company made a purchase of merchandise on credit from Ivanhoe Company on August 8, for $9700, terms 2/10, n/30. On August 17, Concord makes the appropriate payment to Ivanhoe. The entry on August 17 for Concord Company is: A) Accounts Payable 9700 Cash 9700 B) Accounts Payable 9700 Inventory 194 Cash 9506 C) Accounts Payable 9700 Purchase Returns and Allowances 194 Cash 9506 D) Accounts Payable 9506 Cash 9506
Pierce Company sold merchandise to Stanton Company on account FOB shipping point, 2/10, net 30, for $11,600. Pierce prepaid the $221 shipping charge. Which of the following entries does Pierce make to record this sale? a.Accounts Receivable—Stanton, debit $11,600; Sales, credit $11,600 b.Accounts Receivable—Stanton, debit $11,821; Sales, credit $11,821 c.Accounts Receivable—Stanton, debit $11,600; Sales, credit $11,600, and Delivery Expense, debit $221; Cash, credit $221 d.Accounts Receivable—Stanton, debit $11,368; Sales, credit $11,368, and Accounts Receivable—Stanton, debit $221; Cash, credit $221
McIntyre Company (Perpetual Inventory System) made a purchase of merchandise on credit from Marvin Company on August 8, for $8,000, terms 3/10 n/30. On August 17, McIntyre makes the appropriate payment to Marvin. The entry on August 17 for McIntyre Company is: Debit Accounts Payable 8,000. Credit Cash 8,000. Debit Accounts Payable 7,760. Credit Cash 7,760. Debit Accounts Payable 8,000. Credit Purchase Returns and Allowances 260. Credit Cash 7,760. Debit Accounts Payable 8,000. Credit Inventory 240. Credit Cash 7,760.
Travis Company purchased merchandise on account from a supplier for $12,900, terms 2/10, net 30. Travis Company paid for the merchandise within the discount period. Under a perpetual inventory system, record the journal entries required for the above transactions.
Sampson Co. Sold merchandise to Batson Co., on account, $46,0000, terms 2/15, n/45. The cost of the merchandise sold is $38,500. Batson Co. paid the invoice within the discount period. Prepare the entries for Sampson Co. for a) the sale of the merchandise and, b) the receipt of payment from Batson.

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