AccountingFulco Company engaged in the following transactions in March 2020MarchSold merchandise on credit to James William, terms n/30,FOB shipping point, $3,000 (cost, $1,800).7Purchased merchandise on credit from Leverage Company,terms n/30, FOB shipping point, $6,000.Paid Leverage Company for shipping charges on merchandisepurchased on March 8, $2549Sold merchandise on credit to Deepak Soni, terms n/30, FOBshipping point, $2,400 (cost, $1,440).14Returned damaged merchandise received from Leverage Companyon March 8 for credit, $600.1417Received check from James William for his purchase of March 7.21Paid Leverage Company the balance from the transactions ofMarch 8 and March 14.Accepted from Deepak Soni a return of merchandise, which wasput back in inventory, $200 (cost, $120).24Prepare journal entries to record the transactions, assuming use of theperpetual inventory system.

Name: AccountingFulco Company engaged in the following transactions in Marc
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: AccountingFulco Company engaged in the following transactions in March 2020MarchSold merchandise on credit to James William, terms n/30,FOB shipping point, $3,000 (cost, $1,800).7Purchased merchandise on credit from Leverage Company,terms n/30, FOB

Journal Entries: are the first recording of any transaction in the books of accounts. These entries…

Answered: Prepare journal entries to record the…

Business

Accounting

Prepare journal entries to record the transactions, assuming perpetual inventory system.

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 8E: Toby Company had the following sales transactions for March: Mar. 6Sold merchandise on account to...

See similar textbooks

Related questions

Q: How do you enter an adjusting entry for Inventory?

A: Inventory adjustment Fluctuation in the inventory is a serious issue for a business entity. The…

Q: n which journal is the receipt of a promissory note from a customer on account recorded ? a.…

A: Revenue journal is used for recording sales income. When sales are made Revenue a/c is credited and…

Q: How to journalize entries from accounting for purchase with frieght transaction?

A: On any purchase if freight charges paid it is called freight in charges and it is part of cost of…

Q: Post to the ledger accounts.

A: The process of recording business transactions in the books of accounts for the first time is…

Q: Describe the flow of data in the purchasing process that is initiated when the purchasing…

A: Purchasing process refers to the process of procurement of goods or inventory. It starts with the…

Q: The Inventory account balance appearing in a perpetual inventory worksheet represents the

A: The products and materials that a company keeps on hand with the intention of reselling, producing,…

Q: Which journal entry is correct when there is a sale under a perpetual inventory and FOB shipping…

A: Solution- Accounts payable -------------------DR To Merchandise inventory. (To…

Q: What document signals that a company should record thepurchase of goods on account?a. Purchase…

Q: Purchased inventory received is added to the inventory records after all of the following are…

A: THE PURCHASER OR BUYER OF INVENTORY WILL RECONCILE PURCHASE ORDER MADE , INVOICE ISSUED BY VENDOR…

Q: ow is forcasting part of the bookkeeping proces

A: Bookkeeping involves several tasks, including recording transactions, posting debits and credits,…

Q: When recording purchase returns and purchase allowances under the periodic inventory system, what…

A: Periodic Inventory System:Periodic inventory system is a system in which the inventory is updated…

Q: Explain the inventory accounting system.

A: Inventory accounting is the body of accounting that used to valuing and accounting for changes in…

Q: A perpetual inventory system has these characteristics:

A: Perpetual inventory is a technique in which the sale and purchases of stocks are recorded with the…

Q: Identify the cycle to which each of the following general ledgeraccounts will ordinarily be…

A: General ledger: A general ledger is also referred to as a nominal ledger which is a book keeping…

Q: A relational database system contains the following inventory data: part number, description,…

Q: How to journalize entries from accounting for sales with frieght transaction

A: The journal entry is a way of recording business transactions. It is the event when business…

Q: Explain how to report and analyze inventory.

A: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a retailer, or a…

Q: Discuss how discounts are recorded in a perpetual inventory system, and compare how discounts are…

A: There are two methods to determine the inventory of the company purchased. 1. Perpetual inventory…

Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

Topic Video

Question

Accounting
Fulco Company engaged in the following transactions in March 2020
March
Sold merchandise on credit to James William, terms n/30,
FOB shipping point, $3,000 (cost, $1,800).
7
Purchased merchandise on credit from Leverage Company,
terms n/30, FOB shipping point, $6,000.
Paid Leverage Company for shipping charges on merchandise
purchased on March 8, $254
9
Sold merchandise on credit to Deepak Soni, terms n/30, FOB
shipping point, $2,400 (cost, $1,440).
14
Returned damaged merchandise received from Leverage Company
on March 8 for credit, $600.
14
17
Received check from James William for his purchase of March 7.
21
Paid Leverage Company the balance from the transactions of
March 8 and March 14.
Accepted from Deepak Soni a return of merchandise, which was
put back in inventory, $200 (cost, $120).
24
Prepare journal entries to record the transactions, assuming use of the
perpetual inventory system.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions

Toby Company had the following sales transactions for March: Mar. 6Sold merchandise on account to Osbourne, Inc., invoice no. 1128, 563.17. 14Sold merchandise on account to Ortiz Company, invoice no. 1129, 823.50. 20Sold merchandise on account to Bailey Corporation, invoice no. 1130, 2,350.98. 24Sold merchandise on account to Shannon Corporation, invoice no. 1131, 1,547.07. Assume that Toby Company had beginning balances on March 1 of 3,569.80 (Sales 411) and 2,450.39 (Accounts Receivable 113). Record the sales of merchandise on account in the sales journal (page 24) and then post to the general ledger.
Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is sold on account for 300 plus 3% sales tax, with 2/10, n/30 cash discount terms. (b) Part of the merchandise sold in transaction (a) for 70 plus sales tax is returned for credit. (c) The balance on account for the merchandise sold in transaction (a) is paid in cash within the discount period.
Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following transactions: a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000. b. Collected accounts receivable in the amount of $752,600. c. Purchased goods on credit in the amount of $574,300. d. Paid accounts payable in the amount of $536,200. Required: Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.
Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
Purchases Transactions Barans Company purchased merchandise on account from a supplier for $9,200, terms 2/10, n/30. Barans Company returmed $1,700 of the merchandise and received full credit. a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment? b. What account is credited by Barans Company to record the returm? Merchandise Inventory v
On December 5, ACME purchased $56,250 of merchandise on account from Indiana Corp terms 2/10, n/30.
Purchase-Related Transactions Oppenheimer Company purchased merchandise on account from a supplier for $7,500, terms 1/10, n/30. Oppenheimer Company returned $1,000 of the merchandise and received full credit. a. What is the amount of cash required for the payment within the discount period?$fill in the blank 1 b. Under a perpetual inventory system, what account is credited by Oppenheimer Company to record the return?
Abbey co. Sold merchandise to gomez co. On account, $46000, terms 2/15, net 45. The cost of merchandise sold is $20000. Abbey co. Issued a credit memo for $4700 for merchandise returned that originally cost $2800. Gomez co. Paid the invoice within the discount period. What is the amount of gross profit earned by abbey co on the above transactions?
Purchase-related transaction Shepherd Company purchased merchandise on account from a supplier for $9,000, terms 2/10, n/30. Shepherd Company returned $1,500 of the merchandise before payment was made and received full credit. a. If Shepherd Company pays the invoice within the discount period, what is the amount of cash required for the payment? $ b. Which accounts are decreased by Shepherd Company to record the return Inventory and Accounts Payable
The entry to record the receipt of payment within the discount period on a sale of $2400 with terms of 2/8, n/30 will include a Answer- credit to accounts receivable for $2400 Kingbird, Inc. purchased merchandise inventory with an invoice price of $13100 and credit terms of 2/10, n/30. What is the net cost of the goods if Kingbird, Inc. pays within the discount period? Answer- 12,838 Just tell me the difference between the phrasing of the two questions. In other words, why don't I multiply 0.02 percent to 2,400 and then subtract $48 to get 2352 debit to sales revenue for the first question?
Trading company Andin in September 2020, recorded the following transactions: Date Information September 2 Purchased merchandse from PT. Agung ata price of IDR 750,000, - terms payment of 2/10, n/30 Sold to a Sumba shop for merchandise at a price of September Sth Rp.650,000, - terms payment 2/10, n/ 30 No. Invoice 021. Sold in cash to a Toba shop for merchandise ata price of Rp.475,000 Invoice No. 013 was sent to the Melati shop on the sale of goods at IDR B00,000, - payment terms 1/10, n/ 60. - Received from Mawar shop in the amount of IDR September 6 September 8 350,000 Purchased on credit from a Merapi shop, shop equipment for Rp. 125,000. Purchased from PD. Rinjani merchandise worth IDR 1,500,000, - terms of payment 2/10, n/ 60. Received from Sumba shop for invoice settiement on September 5, amounting to IDR 625,000 with 2% cash discount Purchased merchandise from Muria shop with 9 September 12 September September 14 15th of September payment terms 1/10, n/3o for IDR 900,000…
Purchases and Sales Transactions entered into the following transactions: puring the month of April 2021, Esterlina Gevera Store and Nancy Mulles Distributors Terms: FOB destination; 3/10, n/30. Freight charges amounted Terms: FOB shipping point; 3/10, n/30. Paid freight charges Gevera purchased merchandise on account from Mulles, P243,000. Apr. 5 amounting to P4,000. 7 Gevera purchased merchandise on account from Mulles, P470,000. to P7,000. Gevera returned P18,000 of merchandise to Mulles from the Apr. S purchase. Gevera paid Mulles the amount due on the Apr. 5 transaction less returns and discounts. 10 11 Mulles paid the transportation charges on the Apr. 7 shipment. 14 Gevera paid Mulles the amount due from the Apr. 7 transaction. Gevera purchased merchandise from Mulles on account, P270,000. Terms: 20% trade discount; FOB shipping point; 3/10, n/30. 21 Freight charges on the Apr. 21 transaction amounted to P3,000 and were paid by Gevera. 25 26 Gevera paid Mulles the amount due on…