November 1 Dollar Store purchases merchandise for $1,400 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1.November 5 Dollar Store pays cash for the November 1 purchase.November 7Dollar Store discovers and returns $150 of defective merchandise purchased on November 1, and paid for on November 5,for a cash refund.November 10Dollar Store pays $70 cash for transportation costs for the November 1 purchase.November 13 Dollar Store sells merchandise for $1,512 with terms n/30. The cost of the merchandise is $756.November 16 Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $205 andcost $103; the items were not damaged and were returned to inventory.Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual Inventory system and the grossmethod.No12345678DateNovember 01November 05November 07November 10November 13November 13November 16November 16Merchandise inventoryAccounts payableAccounts payableCashCashAccounts receivableDelivery expenseAccounts receivableSalesSalesCost of goods soldAccounts receivableMerchandise inventoryX Answer is not complete.General JournalCost of goods soldSales returns and allowances33>>>>X33XXXXXXDebit1,4001,400150 x70✔1,512>2051,512 X103>>Credit1,400✔1,372150 x70✔1,512756103205> Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system. (Hint:It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable-Aron.)August 1 Purchased merchandise from Aron Company for $7,500 under credit terms of 1/10, n/30, FOB destination, invoice datedAugust 1.August 5 Sold merchandise to Baird Corporation for $5,200 under credit terms of 2/10, n/60, FOB destination, invoice dated August5. The merchandise had cost $4,000.August 8 Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/18, n/45, FOB shipping point, invoicedated August 8.August 9 Paid $125 cash for shipping charges related to the August 5 sale to Baird CorporationAugust 10 Baird returned merchandise from the August 5 sale that had cost Lowe's $400 and was sold for $600. The merchandise wasrestored to inventory..August 12 After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe's received a creditmemorandum from Waters granting a price reduction of $400 off the $5,400 of goods purchased.August 14 At Aron's request, Lowe's paid $200 cash for freight charges on the August 1 purchase, reducing the amount owed to Aron.August 15 Received balance due from Baird Corporation for the August 5 sale less the return on August 10.August 18 Paid the amount due Waters Corporation for the August 8 purchase less the price allowance from August 12.August 19 Sold merchandise to Tux Company for $4,800 under credit terms of n/10, FOB shipping point, invoice dated August 19. Theof n/19,merchandise had cost $2,400.August 22 Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Lowe's sentTux a $500 credit memorandum toward the $4,800 invoice to resolve the issue.August Received Tux's cash payment for the amount due from the August 19 sale less the price allowance from August 22.August 30 Paid Aron Company the amount due from the August 1 purchase.RequirementView transaction listGeneralJournal<Journal entry worksheet1Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts receivable and accountspayable will be updated based on your entries.2DateAugust 01GeneralLedger3Note: Enter debits before credits.Record entryTrial Balance45Account TitleSchedule ofReceivables6Clear entry7Purchased merchandise from Aron Company for $7,500 under credit terms of1/10, n/30, FOB destination, invoice dated August 1.18Schedule ofPayables.....Debit16IncomeStatementCreditView general journalImpact onIncome>

November 1 Dollar Store purchases merchandise for $1,400 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. November 5 Dollar Store pays cash for the November 1 purchase. November 7 Dollar Store discovers and returns $150 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund. Dollar Store pays $70 cash for transportation costs for the November 1 purchase. November 18 November 13 Dollar Store sells merchandise for $1,512 with terms n/30. The cost of the merchandise is $756. November 16 Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $205 and cost $103; the items were not damaged and were returned to inventory. Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual Inventory system and the gross method.

November 1 Dollar Store purchases merchandise for $1,400 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. November 5 Dollar Store pays cash for the November 1 purchase. November 7 Dollar Store discovers and returns $150 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund. Dollar Store pays $70 cash for transportation costs for the November 1 purchase. November 18 November 13 Dollar Store sells merchandise for $1,512 with terms n/30. The cost of the merchandise is $756. November 16 Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $205 and cost $103; the items were not damaged and were returned to inventory. Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual Inventory system and the gross method.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 15MC: A customer returns $870 worth of merchandise and receives a full refund. What accounts recognize...

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A customer returns $690 worth of merchandise and receives a full refund. What accounts recognize this sales return, assuming the customer has not yet remitted payment to the retailer? A. accounts receivable, sales returns and allowances B. accounts receivable, cash C. sales returns and allowances, purchases D. sales discounts, cost of goods sold
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: May 2Received 411.60 cash from N. Rojas in payment of April 23 invoice of 420, less cash discount. 5Received 2,085 cash in payment of 2,000 note receivable and interest of 85. 8Sold merchandise on account to G. Soto, invoice no. 862, 830. 9Received 11,838.40 cash from D. Maddox in payment of April 30 invoice of 12,080, less cash discount. 15Received cash from G. Soto in payment of invoice no. 862, less cash discount. 16Cash sales for first half of May, 3,259. 19Received 296 cash from R. O. Higgins in payment of April 14 invoice, no discount. 22Sold merchandise on account to N. T. Jennings, invoice no. 863, 753. 25Received 239 cash refund for return of defective equipment bought in April for cash. 28Sold merchandise on account to M. E. Mueller, invoice no. 864, 964. 31Cash sales for second half of May, 4,728. Required 1. Journalize the transactions for May in the cash receipts journal and the sales journal. Assume the periodic inventory method is used. 2. If you are using Working Papers, total and rule the journals. Prove the equality of the debit and credit totals.
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Nov. 1 Dollar Store purchases merchandise for $1,300 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. 5 Dollar Store pays cash for the November 1 purchase. 7 Dollar Store discovers and returns $150 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund. 10 Dollar Store pays $65 cash for transportation costs for the November 1 purchase. 13 Dollar Store sells merchandise for $1,404 with terms n/30. The cost of the merchandise is $702. 16 Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $285 and cost $143; the items were not damaged and were returned to inventory.