Prepare journal entries to record the following merchandising transactions of Menards, which applies the perpetual inventory system and gross method. July 3 Purchased merchandise from OLB Corp. for $15,000 under credit terms of 1/10, n/30, FOB destination, invoice dated July 3. 7 Sold merchandise to Brill Co. for $11,500 under credit terms of 2/10, n/60, FOB destination_ invoice dated July 7. The merchandise had cost $7,750. 10 11 12 14 Purchased merchandise from Rupert Co. for $14,200 under credit terms of 1/10, n/45, FOB shipping point, invoice dated July 10. Paid $300 cash for shipping charges related to the July 7 sale to Brill Co. Brill returned merchandise from the July 7 sale that had cost Menards $1,450 and been sold for $2,000. The merchandise was restored to inventory. After negotiations with Rupert Co. concerning problems with the merchandise purchased on July 10, Menards received a price reduction from Rupert of $1,200. Menards debited accounts payable for $1,200. 15 At OLB's request, Menards paid $200 cash for freight charges on the July 3 purchase, reducing the amount owed (accounts payable) to OLB. 17 Received balance due from Brill Co. for the July 7 sale less the return on July 12. 20 21 24 Paid the amount due Rupert Co. for the July 10 purchase less the price reduction granted on July 14 Sold merchandise to Brown for $11,000 under credit terms of 1/10, n/30, FOB shipping point. invoice dated July 21. The merchandise had cost $7,000. Brown requested a price reduction on the July 21 sale because the merchandise did not mee specifications. Menards gave a price reduction (allowance) of $1,000 to Brown and creditec Brown's accounts receivable for that amount. 30 Received Brown's cash payment for the amount due from the July 21 sale less the price allow ance from July 24. 31 Paid OLB Corp. the amount due from the July 3 purchase.
Prepare journal entries to record the following merchandising transactions of Menards, which applies the perpetual inventory system and gross method. July 3 Purchased merchandise from OLB Corp. for $15,000 under credit terms of 1/10, n/30, FOB destination, invoice dated July 3. 7 Sold merchandise to Brill Co. for $11,500 under credit terms of 2/10, n/60, FOB destination_ invoice dated July 7. The merchandise had cost $7,750. 10 11 12 14 Purchased merchandise from Rupert Co. for $14,200 under credit terms of 1/10, n/45, FOB shipping point, invoice dated July 10. Paid $300 cash for shipping charges related to the July 7 sale to Brill Co. Brill returned merchandise from the July 7 sale that had cost Menards $1,450 and been sold for $2,000. The merchandise was restored to inventory. After negotiations with Rupert Co. concerning problems with the merchandise purchased on July 10, Menards received a price reduction from Rupert of $1,200. Menards debited accounts payable for $1,200. 15 At OLB's request, Menards paid $200 cash for freight charges on the July 3 purchase, reducing the amount owed (accounts payable) to OLB. 17 Received balance due from Brill Co. for the July 7 sale less the return on July 12. 20 21 24 Paid the amount due Rupert Co. for the July 10 purchase less the price reduction granted on July 14 Sold merchandise to Brown for $11,000 under credit terms of 1/10, n/30, FOB shipping point. invoice dated July 21. The merchandise had cost $7,000. Brown requested a price reduction on the July 21 sale because the merchandise did not mee specifications. Menards gave a price reduction (allowance) of $1,000 to Brown and creditec Brown's accounts receivable for that amount. 30 Received Brown's cash payment for the amount due from the July 21 sale less the price allow ance from July 24. 31 Paid OLB Corp. the amount due from the July 3 purchase.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
answer in text form please (without image), Note: .Every entry should have narration please
Transcribed Image Text:Prepare journal entries to record the following merchandising transactions of Menards, which applies the
perpetual inventory system and gross method.
July 3 Purchased merchandise from OLB Corp. for $15,000 under credit terms of 1/10, n/30, FOB
destination, invoice dated July 3.
7
Sold merchandise to Brill Co. for $11,500 under credit terms of 2/10, n/60, FOB destination,
invoice dated July 7. The merchandise had cost $7,750.
10
11
12
14
Purchased merchandise from Rupert Co. for $14,200 under credit terms of 1/10, n/45, FOB
shipping point, invoice dated July 10.
Paid $300 cash for shipping charges related to the July 7 sale to Brill Co.
Brill returned merchandise from the July 7 sale that had cost Menards $1,450 and been sold for
$2,000. The merchandise was restored to inventory.
After negotiations with Rupert Co. concerning problems with the merchandise purchased on
July 10, Menards received a price reduction from Rupert of $1,200. Menards debited accounts
payable for $1,200.
15
At OLB's request, Menards paid $200 cash for freight charges on the July 3 purchase, reducing
the amount owed (accounts payable) to OLB.
17 Received balance due from Brill Co. for the July 7 sale less the return on July 12.
Paid the amount due Rupert Co. for the July 10 purchase less the price reduction granted on July 14.
Sold merchandise to Brown for $11,000 under credit terms of 1/10, n/30, FOB shipping point,
invoice dated July 21. The merchandise had cost $7,000.
Brown requested a price reduction on the July 21 sale because the merchandise did not meet
specifications. Menards gave a price reduction (allowance) of $1,000 to Brown and credited
Brown's accounts receivable for that amount.
30
Received Brown's cash payment for the amount due from the July 21 sale less the price allow-
ance from July 24.
31 Paid OLB Corp. the amount due from the July 3 purchase.
20
21
24
Doulder Compon
dinoted account balances from ite neneral ledger on March 21 its ficool vanr and
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education