Prepare journal entries for the following transactions for both the seller (BMX) and buyer (Sanuk). May 4 BMX sold $1,500 of merchandise on account to Sanuk, terms FOB shipping point, n∕45, invoice dated May 4. The cost of the merchandise was $900. 6 Sanuk paid transportation charges of $30 on the May 4 purchase from BMX. 8 BMX sold $1,000 of merchandise on account to Sanuk, terms FOB destination, n∕15, invoice dated May 8. The cost of the merchandise was $700. This sale permitted returns for 30 days. 10 BMX paid transportation costs of $50 for delivery of merchandise sold to Sanuk on May 8. 16 BMX issued Sanuk a $200 credit memorandum for merchandise returned. The merchandise was purchased by Sanuk on account on May 8. The cost of the merchandise returned was $140. 18 BMX received payment from Sanuk for the May 8 purchase. 21 BMX sold $2,400 of merchandise on account to Sanuk, terms FOB shipping point, 2∕10, n∕EOM. The cost of the merchandise was $1,440. This sale permitted returns for 90 days. 31 BMX received payment from Sanuk for the May 21 purchase, less discount.
Prepare
May 4 BMX sold $1,500 of merchandise on account to Sanuk, terms FOB shipping point, n∕45, invoice
dated May 4. The cost of the merchandise was $900.
6 Sanuk paid transportation charges of $30 on the May 4 purchase from BMX.
8 BMX sold $1,000 of merchandise on account to Sanuk, terms FOB destination, n∕15, invoice
dated May 8. The cost of the merchandise was $700. This sale permitted returns for
30 days.
10 BMX paid transportation costs of $50 for delivery of merchandise sold to Sanuk on May 8.
16 BMX issued Sanuk a $200 credit memorandum for merchandise returned. The merchandise
was purchased by Sanuk on account on May 8. The cost of the merchandise returned
was $140.
18 BMX received payment from Sanuk for the May 8 purchase.
21 BMX sold $2,400 of merchandise on account to Sanuk, terms FOB shipping point, 2∕10,
n∕EOM. The cost of the merchandise was $1,440. This sale permitted returns for 90 days.
31 BMX received payment from Sanuk for the May 21 purchase, less discount.
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