Prepare journal entries to record the following merchandising transactions of Brown's, which uses the perpetual inventory system and the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable-Parker) July 1 Purchased merchandise from Parker Company for $6,200 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Griffin Company for $1,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $600. July 3 Paid $165 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $1,100 for $1,900 cash. July 9 Purchased merchandise from Wilson Company for $2,300 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $500 of merchandise purchased on July 9 from Wilson Company and debited its account payable for that amount. July 12 Received the balance due from Griffin Company for the invoice dated July 2, net of the discount.. July 16 Paid the balance due to Parker Company within the discount period. July 19 Sold merchandise that cost $1,000 to Mannion Company for $1,400 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $300 to Mannion Company for merchandise sold on July 19 and credited Mannion's accounts receivable for that amount. July 24 Paid Wilson Company the balance due, net of discount. July 30 Received the balance due from Mannion Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost $4,300 to Griffin Company for $7,200 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.
Prepare journal entries to record the following merchandising transactions of Brown's, which uses the perpetual inventory system and the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable-Parker) July 1 Purchased merchandise from Parker Company for $6,200 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Griffin Company for $1,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $600. July 3 Paid $165 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $1,100 for $1,900 cash. July 9 Purchased merchandise from Wilson Company for $2,300 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $500 of merchandise purchased on July 9 from Wilson Company and debited its account payable for that amount. July 12 Received the balance due from Griffin Company for the invoice dated July 2, net of the discount.. July 16 Paid the balance due to Parker Company within the discount period. July 19 Sold merchandise that cost $1,000 to Mannion Company for $1,400 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $300 to Mannion Company for merchandise sold on July 19 and credited Mannion's accounts receivable for that amount. July 24 Paid Wilson Company the balance due, net of discount. July 30 Received the balance due from Mannion Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost $4,300 to Griffin Company for $7,200 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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