Presented below are selected transactions for Martinez Company during September and October of the current year. Martinez uses a perpetual inventory system and the earnings approach. Sept. Oct. 1 Purchased merchandise on account from Hillary Company at a cost of $51,000, FOB destination, terms 1/15, n/30. The correct company paid $2,000 of freight charges to Trucking Company on the September 1 merchandise purchase. 2 5 15 16 17 25 30 1 2 3 10 11 12 17 31 Returned for credit $3,000 of damaged goods purchased from Hillary Company on September 1. Sold the remaining merchandise purchased from Hillary Company to Irvine Company for $94,400, terms 2/10,n/30, FOB destination. The correct company paid $2,800 of freight charges on the September 15 sale of merchandise. Issued Irvine Company a credit of $5.900 for returned goods. These goods had cost Martinez Company $3,000 and were returned to inventory. Received the balance owing from Irvine Company for the September 15 sale. Paid Hillary Company the balance owing for the September 1 purchase. Purchased merchandise on account from Kimmel Company at a cost of $56,000, terms 2/10, n/30, FOB shipping point. The correct company paid freight costs of $1,100 on the October 1 purchase. Obtained a purchase allowance of $2.500 from Kimmel Company to compensate for some minor damage to goods purchased on October 1 Paid Kimmel Company the amount owing on the October 1 purchase. Sold all of the merchandise purchased from Kimmel Company to Kieso Company for $105.000, terms 2/10, n/30, FOB shipping point. The correct company paid $800 freight costs on the October 11 sale Issued Kieso Company a sales allowance of $2.300 because some of the goods did not meet keso's exact specifications Received a cheque from Kieso Company for the balance owing on the October 11 sale
Presented below are selected transactions for Martinez Company during September and October of the current year. Martinez uses a perpetual inventory system and the earnings approach. Sept. Oct. 1 Purchased merchandise on account from Hillary Company at a cost of $51,000, FOB destination, terms 1/15, n/30. The correct company paid $2,000 of freight charges to Trucking Company on the September 1 merchandise purchase. 2 5 15 16 17 25 30 1 2 3 10 11 12 17 31 Returned for credit $3,000 of damaged goods purchased from Hillary Company on September 1. Sold the remaining merchandise purchased from Hillary Company to Irvine Company for $94,400, terms 2/10,n/30, FOB destination. The correct company paid $2,800 of freight charges on the September 15 sale of merchandise. Issued Irvine Company a credit of $5.900 for returned goods. These goods had cost Martinez Company $3,000 and were returned to inventory. Received the balance owing from Irvine Company for the September 15 sale. Paid Hillary Company the balance owing for the September 1 purchase. Purchased merchandise on account from Kimmel Company at a cost of $56,000, terms 2/10, n/30, FOB shipping point. The correct company paid freight costs of $1,100 on the October 1 purchase. Obtained a purchase allowance of $2.500 from Kimmel Company to compensate for some minor damage to goods purchased on October 1 Paid Kimmel Company the amount owing on the October 1 purchase. Sold all of the merchandise purchased from Kimmel Company to Kieso Company for $105.000, terms 2/10, n/30, FOB shipping point. The correct company paid $800 freight costs on the October 11 sale Issued Kieso Company a sales allowance of $2.300 because some of the goods did not meet keso's exact specifications Received a cheque from Kieso Company for the balance owing on the October 11 sale
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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Transcribed Image Text:Presented below are selected transactions for Martinez Company during September and October of the current year. Martinez uses a
perpetual inventory system and the earnings approach.
Sept. 1 Purchased merchandise on account from Hillary Company at a cost of $51,000, FOB destination, terms 1/15, n/30.
The correct company paid $2,000 of freight charges to Trucking Company on the September 1 merchandise
purchase.
Oct.
2
15
16
17
25
30
1
2
3
10
11
12
17
31
Returned for credit $3,000 of damaged goods purchased from Hillary Company on September 1.
Sold the remaining merchandise purchased from Hillary Company to Irvine Company for $94,400, terms 2/10, n/30,
FOB destination.
The correct company paid $2,800 of freight charges on the September 15 sale of merchandise.
Issued Irvine Company a credit of $5,900 for returned goods. These goods had cost Martinez Company $3,000 and
were returned to inventory.
Received the balance owing from Irvine Company for the September 15 sale.
Paid Hillary Company the balance owing for the September 1 purchase.
Purchased merchandise on account from Kimmel Company at a cost of $56,000, terms 2/10, n/30, FOB shipping
point.
The correct company paid freight costs of $1,100 on the October 1 purchase.
Obtained a purchase allowance of $2.500 from Kimmel Company to compensate for some minor damage to goods
purchased on October 1
Paid Kimmel Company the amount owing on the October 1 purchase.
Sold all of the merchandise purchased from Kimmel Company to Kieso Company for $105,000, terms 2/10, r/30,
FOB shipping point.
The correct company paid $800 freight costs on the October 11 sale
Issued Kieso Company a sales allowance of $2,300 because some of the goods did not meet Kirso's exact
specifications
Received a cheque from Kieso Company for the balance owing on the October 11 sale
Transcribed Image Text:Prepare journal entries to record the above transactions for Martinez Company. (Credit account titles are automatically indented when
the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts
Record journal entries in the order presented in the problem. List all debit entries before credit entries)
Account Titles and Explanation
Date
(To record sales on account.).
(To record cost of goods sold.)
(To record credit for goods returned)
Debit
Credit
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