he gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts ayable-Lee.) July 1 Purchased merchandise from Lee Company for $7,800 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Parker Company for $1,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $1,080. July 3 Paid $485 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $2,100 for $3,500 cash. July 9 Purchased merchandise from Thompson Company for $3,100 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. uly 11 Returned $600 of merchandise purchased on July 9 from Thompson Company and debited its account payable for that amount. uly 12 Received the balance due from Parker Company for the invoice dated July 2, net of the discount. uly 16 Paid the balance due to Lee Company within the discount period. uly 19 Sold merchandise that cost $2,100 to Mitchell Company for $3,000 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. uly 21 Gave a price reduction (allowance) of $600 to Mitchell Company for merchandise sold on July 19 and credited Mitchell's accounts receivable for that amount. uly 24 Paid Thompson Company the balance due, net of discount. uly 30 Received the balance due from Mitchell Company for the invoice dated July 19, net of discount. uly 31 Sold merchandise that cost $5,300 to Parker Company for $8,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.
he gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts ayable-Lee.) July 1 Purchased merchandise from Lee Company for $7,800 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Parker Company for $1,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $1,080. July 3 Paid $485 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $2,100 for $3,500 cash. July 9 Purchased merchandise from Thompson Company for $3,100 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. uly 11 Returned $600 of merchandise purchased on July 9 from Thompson Company and debited its account payable for that amount. uly 12 Received the balance due from Parker Company for the invoice dated July 2, net of the discount. uly 16 Paid the balance due to Lee Company within the discount period. uly 19 Sold merchandise that cost $2,100 to Mitchell Company for $3,000 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. uly 21 Gave a price reduction (allowance) of $600 to Mitchell Company for merchandise sold on July 19 and credited Mitchell's accounts receivable for that amount. uly 24 Paid Thompson Company the balance due, net of discount. uly 30 Received the balance due from Mitchell Company for the invoice dated July 19, net of discount. uly 31 Sold merchandise that cost $5,300 to Parker Company for $8,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.
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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