**Transaction Details for February****Feb. 3:** Purchased $2,600 of merchandise inventory on account under terms 3/10, n/EOM and FOB shipping point from Savvy's Garden.**Feb. 7:** Returned $300 of defective merchandise purchased on February 3.**Feb. 9:** Paid freight bill of $100 on February 3 purchase.**Feb. 10:** Sold merchandise inventory on account for $4,200 to Trinkett Topiaries. Payment terms were 2/15, n/30. These goods cost the company $2,100.**Feb. 12:** Paid amount owed on credit purchase of February 3, less the return and the discount.**Feb. 28:** Received cash from Trinkett Topiaries in full settlement of their debt.[Print Button] [Done Button]**Explanation of Terms:**- **3/10, n/EOM:** This means the buyer can take a 3% discount on the invoice price if they pay within 10 days; otherwise, the net (full) amount is due at the end of the month.- **FOB shipping point:** This means the buyer is responsible for the shipping costs and owns the goods in transit.- **2/15, n/30:** This means the buyer can take a 2% discount on the invoice price if they pay within 15 days; otherwise, the net (full) amount is due within 30 days.**Note:**The transactions exhibit significant actions within a company’s purchasing cycle and emphasize the importance of terms and conditions in managing cash flow and accounting records. Understanding these entries is essential for accurate bookkeeping and financial analysis. ### Journalizing Sales Transaction**Date:** February 10 **Description:** Sold merchandise inventory on account for $4,200 to Trinkett Topiaries. The payment terms are 2/15, n/30. These goods cost the company $2,100.**Instructions:** Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale; that will be done in the next step.#### Journal Entry| Date | Accounts | Debit | Credit ||------------|----------------------------------------|--------|--------|| Feb. 10 | Accounts Receivable—Trinkett Topiaries | $4,200 | || | Sales Revenue | | $4,200 |**Explanation of Table:**- **Date Column:** Lists the date of the transaction.- **Accounts Column:** Includes the accounts involved in the transaction.- **Debit Column:** Shows the amount debited.- **Credit Column:** Shows the amount credited.In this journal entry:- Accounts Receivable is debited for $4,200, which represents the amount owed by Trinkett Topiaries for the merchandise purchased.- Sales Revenue is credited for $4,200, representing the income generated from the sale.

Name: **Transaction Details for February****Feb. 3:** Purchased $2,600 of m
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Description: **Transaction Details for February****Feb. 3:** Purchased $2,600 of merchandise inventory on account under terms 3/10, n/EOM and FOB shipping point from Savvy's Garden.**Feb. 7:** Returned $300 of defective merchandise purchased on February 3.**Feb.

Introduction:A transaction is a business event that has a monetary effect on a company's financial…

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Accounting

Feb. 10: Sold merchandise inventory on account for $4,200 to Trinkett Topiaries. Payment terms were 2/15, n/30. These goods cost the company $2,100. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following s Credit Date Accounts Debit Feb. 10 Accounts Receivable-Trinkett Topiaries Sales Revenue

Feb. 10: Sold merchandise inventory on account for $4,200 to Trinkett Topiaries. Payment terms were 2/15, n/30. These goods cost the company $2,100. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following s Credit Date Accounts Debit Feb. 10 Accounts Receivable-Trinkett Topiaries Sales Revenue

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter9: Sales And Purchases

Section: Chapter Questions

Problem 7E: Record the following transactions for a perpetual inventory system in general journal form. a. Sold...

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Record the following transactions for a perpetual inventory system in general journal form. a. Sold merchandise on account to Southridge Manufacturing, Inc., invoice no. 6910, 1,815.24. The cost of merchandise was 1,320. b. Issued credit memorandum no. 56 to Southridge Manufacturing, Inc., for merchandise returned, 622. The cost of the merchandise was 485. c. Bought merchandise on account from Michals Inc., invoice no. 1685, 850; terms 1/10, n/30; dated April 14; FOB Dallas, freight prepaid and added to the invoice, 65.00 (total 915). d. Received credit memorandum no. 219 from Michals Inc. for merchandise returned, 210.
Prepare journal entries to record the following transactions. A. November 19, purchased merchandise inventory, on account, $12,000 B. November 29, paid creditor for part of November 19 purchase, $10,000
ADJUSTMENT FOR MERCHANDISE INVENTORY USING T ACCOUNTS: PERIODIC INVENTORY SYSTEM Matt Henry owns a business called Henrys Sporting Goods. His beginning inventory as of January 1, 20--, was 45,000, and his ending inventory as of December 31, 20--, was 57,000. Set up T accounts for Merchandise Inventory and Income Summary and perform the year-end adjustment for Merchandise Inventory.
C. R. McIntyre Company sells candy wholesale, primarily to vending machine operators. Terms of sales on account are 2/10, n/30, FOB shipping point. The following transactions involving cash receipts and sales of merchandise took place in May of this year: Required 1. Journalize the transactions for May in the cash receipts journal and the sales journal. Assume the periodic inventory method is used. 2. Total and rule the journals. 3. Prove the equality of the debit and credit totals.
ADJUSTMENT FOR MERCHANDISE INVENTORY USING T ACCOUNTS: PERIODIC INVENTORY SYSTEM Sandra Owens owns a business called Sandras Sporting Goods. Her beginning inventory as of January 1, 20--, was 33,000, and her ending inventory as of December 31, 20--, was S36,000. Set up T accounts for Merchandise Inventory and Income Summary and perform the year-end adjustment for Merchandise Inventory.
JOURNAL ENTRIESPERIODIC INVENTORY Amy Douglas owns a business called Douglas Distributors. The following transactions took place during January of the current year. Journalize the transactions in a general journal using the periodic inventory method. Jan. 5 Purchased merchandise on account from Elite Warehouse, 4,100. 8 Paid freight charge on merchandise purchased, 300. 12 Sold merchandise on account to Memories Unlimited, 5,200. 15 Received a credit memo from Elite Warehouse for merchandise returned, 700. 22 Issued a credit memo to Memories Unlimited for merchandise returned, 400.
Longmire Sons nude sales un credit to Alderman Sports totaling 500,000 on April 18. The cost of the goods sold is 400,000. Longmire estimates 3% of its sales to Alderman may be returned. On May 22, 9,000 worth of goods (with a cost of 7,200) are returned by Alderman. Longmire uses a periodic inventory system. Prepare the related journal entries for Longmire Sons.