### Journalizing Purchases on Account#### Scenario:Monty Company buys merchandise on account from Sunland Company. The selling price of the goods is $1,140, and the cost of the goods is $830. Both companies utilize perpetual inventory systems.#### Transaction Journal Entries:Here we detail the necessary journal entries for both Monty Company and Sunland Company:#### Monty Company:For Monty Company, the following journal entry is made to record the purchase of inventory on account:- **Debit:** Inventory $1,140- **Credit:** Accounts Payable $1,140| Account Titles and Explanation | Debit | Credit ||-------------------------------|-------|--------|| Inventory | 1,140 | || Accounts Payable | | 1,140 |#### Sunland Company:For Sunland Company, there are two separate entries needed. One to record the credit sale and another to reflect the cost of merchandise sold:##### To Record Credit Sale:- **Debit:** Accounts Receivable $1,140- **Credit:** Sales Revenue $1,140##### To Record Cost of Merchandise Sold:- **Debit:** Cost of Goods Sold $830- **Credit:** Inventory $830| Account Titles and Explanation | Debit | Credit ||-------------------------------|-------|--------|| Accounts Receivable | 1,140 | || Sales Revenue | | 1,140 ||*To Record Credit Sale* | | || Cost of Goods Sold | 830 | || Inventory | | 830 ||*To Record Cost of Merchandise Sold* | | |In these entries, we see how both companies handle transactions and perpetual inventory management to maintain accurate financial records.

Name: ### Journalizing Purchases on Account#### Scenario:Monty Company buys
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: ### Journalizing Purchases on Account#### Scenario:Monty Company buys merchandise on account from Sunland Company. The selling price of the goods is $1,140, and the cost of the goods is $830. Both companies utilize perpetual inventory systems.#### T

Journal entries are the basic method for recording financial transactions in the books of accounts.…

Business

Accounting

Monty Company buys merchandise on account from Sunland Company. The selling price of the goods is $1,140, and the cost of the goods is $830. Both companies use perpetual inventory systems. Journalize the transaction on the books of both companies. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)

Monty Company buys merchandise on account from Sunland Company. The selling price of the goods is $1,140, and the cost of the goods is $830. Both companies use perpetual inventory systems. Journalize the transaction on the books of both companies. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Prepare the journal entries to record the following transactions on Wildhorse Company’s books using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (a) On March 2, Windsor Company sold $947,600 of merchandise to Wildhorse Company on account, terms 3/10, n/30. The cost of the merchandise sold was $534,200. (b) On March 6, Wildhorse Company returned $105,700 of the merchandise purchased on March 2. The cost of the merchandise returned was $68,600. (c) On March 12, Windsor Company received the balance due from Wildhorse Company. No. Date Account Titles and Explanation Debit Credit (a) choose a transaction date March 2March 6March 12 enter an account title…
Sheridan Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. (a) (b) (c) No. Prepare all necessary journal entries for Sheridan. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) (a) (1) (a) (2) (b) On July 1, (1) Sheridan purchased $69,000 of inventory, terms 2/10, n/30, FOB shipping point. (2) Sheridan paid freight costs of $1,095. O On July 3, Sheridan returned damaged goods and received credit of $6,900. On July 10, Sheridan paid for the goods. Date July 1 July 1 July 3 July 10 V Account Titles and Explanation Inventory Accounts Payable Freight-In Cash Accounts Payable Inventory Accounts Payable Inventory Debit 69000 1095 6900 Credit 69 1 6
please enter the journal entries
s
Consider the following transactions for EZ Rider Toys (Click the icon to view the transactions) Requirements 1. Journalize the purchase transactions Explanations are not required. 2. In the final analysis, how much did the inventory cost EZ Rider Toys? Requirement 1. Journalize the purchase transactions Explanations are not required. (Assume the company uses a perpetual inventory system Record debits first, then credits Exclude explanations from journal entries) Jan. 6: EZ Rider Toys purchased $155,300 worth of PegaBlock toys on account with credit terms of 2/10, n/45. Date Jan 6 Accounts Debit CDE Credit More info Jan. 6 Jan. 12 Jan. 14 EZ Rider Toys purchased $155,300 worth of PegaBlock toys on account with credit terms of 2/10, n/45 EZ Rider Toys returned $15,450 of the merchandise to PegaBlock due to damage during shipment. EZ Rider Toys paid the amount due, less the return and discount. Print Done X
Comprest Company has the following account balances: Purchases of $ 10,551, Purchase Returns and Allowances of $ 859, Purchase Discounts of $ 1,578, Freight-In of $ 294, Freight-Out of $ 538,and Beginning Inventory of $ 3,415. What is the Cost of Goods Available for Sale? Please don't provide solutions in an image format thank you
Journalize the following merchandise transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Mar. 1 Sold merchandise on account, $74,200 with terms 2/10, n/30. The cost of the merchandise sold was $43,300. 9 Received payment less the discount. 13 Issued a $2,500 credit memo for damaged merchandise. The customer agreed to keep the merchandise.
answer in text form please (without image), Note: .Every entry should have narration please
On June 10, Riverbed Company purchased $7,850 of merchandise on account from Pronghorn Company, FOB shipping point, terms 2/10, n/30. Riverbed pays the freight costs of $490 on June 11. Goods totaling $650 are returned to Pronghorn for credit on June 12. On June 19, Riverbed pays Pronghorn Company in full, less the discount. Both companies use a perpetual inventory system.
On April 5, a customer returns 16 bicycles with a sales price of $270 per bike to Barrio Bikes. Each bike cost Barrio Bikes $100. The customer had yet to pay on their account. The bikes are in sellable condition. Assume the perpetual and periodic methods are used. A. Prepare the journal entries to recognize this return if the company uses the perpetual inventory system. If an amount box does not require an entry, leave it blank. B. Prepare the journal entry to recognize this return if the company uses the periodic inventory system. If an amount box does not require an entry, leave it blank.
On March 2, Ivanhoe Company sold $890,000 of merchandise on account to Bridgeport Company, terms 2/10, n/30. The cost of the merchandise sold was $522,000. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation (b) Inventory Accounts Payable Your Answer Correct Answer (Used) (c) Account Titles and Explanation Accounts Payable On March 6, Bridgeport Company returned $89,000 of the merchandise purchased on March 2. The cost of the returned merchandise was $54,800. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Inventory Debit count Titles and Explanation Debit 890,000 Debit Credit…
Carla Vista Company uses the allowance method for estimating uncollectible accounts. Prepare journal entries to record the following transactions. Omit cost of goods sold entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) January 5 April 15 August 21 October 5 Date Sold merchandise to Ryan Seacrest for $2,800, terms n/15. Received $480 from Ryan Seacrest on account. Wrote off as uncollectible the balance of the Ryan Seacrest account when he declared bankruptcy. Unexpectedly received a check for $690 from Ryan Seacrest. V Account Titles and Explanation (To reverse write-off of Ryan Seacrest account) (To record collection from Ryan Seacrest account) Debit Credit