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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.

College Accounting (Book Only): A Career Approach
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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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
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
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