Feb. 3 Purchased $2,700 of merchandise inventory on account under terms 3/10, n/EOM and FOB shipping point from Sascha's Nest. Feb. 7 Returned $700 of defective merchandise purchased on February 3. Feb. 9 Paid freight bill of $300 on February 3 purchase. Feb. 10 Sold merchandise inventory on account for $4,500 to Top Mindfulness. Payment terms were 1/15, n/30. These goods cost the company $2,250. Feb. 12 Paid amount owed on credit purchase of February 3, less the return and the discount. Feb. 28 Received cash from Top Mindfulness in full settlement of their debt.
Feb. 3 Purchased $2,700 of merchandise inventory on account under terms 3/10, n/EOM and FOB shipping point from Sascha's Nest. Feb. 7 Returned $700 of defective merchandise purchased on February 3. Feb. 9 Paid freight bill of $300 on February 3 purchase. Feb. 10 Sold merchandise inventory on account for $4,500 to Top Mindfulness. Payment terms were 1/15, n/30. These goods cost the company $2,250. Feb. 12 Paid amount owed on credit purchase of February 3, less the return and the discount. Feb. 28 Received cash from Top Mindfulness in full settlement of their debt.
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...
Related questions
Question
Feb. 3
Purchased $2,700 of merchandise inventory on account under terms 3/10, n/EOM and FOB shipping point from Sascha's Nest.
Feb. 7
Returned $700 of defective merchandise purchased on February 3.
Feb. 9
Paid freight bill of $300 on February 3 purchase.
Feb. 10
Sold merchandise inventory on account for $4,500 to Top Mindfulness. Payment terms were 1/15, n/30. These goods cost the company $2,250.
Feb. 12
Paid amount owed on credit purchase of February 3, less the return and the discount.
Feb. 28
Received cash from Top Mindfulness in full settlement of their debt.
Feb.
3: Purchased
$2,700
of merchandise inventory on account under terms
3/10,
n/EOM and FOB shipping point from
Sascha's Nest.
|
Date
|
Accounts
|
Debit
|
Credit
|
|---|---|---|---|
|
Feb. 3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Feb.
7: Returned
$700
of defective merchandise purchased on
February
3.|
Date
|
Accounts
|
Debit
|
Credit
|
|---|---|---|---|
|
Feb. 7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Feb.
9: Paid freight bill of
$300
on
February
3 purchase.|
Date
|
Accounts
|
Debit
|
Credit
|
|---|---|---|---|
|
Feb. 9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Feb.
10:
Sold merchandise inventory on account for
$4,500
to
Top Mindfulness.
Payment terms were
1/15,
n/30. These goods cost the company
$2,250.
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 step.
|
Date
|
Accounts
|
Debit
|
Credit
|
|---|---|---|---|
|
Feb. 10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Now journalize the expense related to the
February
10
sale—Cost
of goods,
$2,250.
|
Date
|
Accounts
|
Debit
|
Credit
|
|---|---|---|---|
|
Feb. 10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Feb.
12:
Paid amount owed on credit purchase of
February
3, less the return and the discount.|
Date
|
Accounts
|
Debit
|
Credit
|
|---|---|---|---|
|
Feb. 12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Feb.
28: Received cash from
Top Mindfulness
in full settlement of their debt.|
Date
|
Accounts
|
Debit
|
Credit
|
|---|---|---|---|
|
Feb. 28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning