The following transactions took place at Funky Fashions during July 20X1. Funky Fashions uses a perpetual inventory system.DATETRANSACTIONSJuly 1, 20X1Purchased dresses for $5,200 plus a freight charge of $250 from Fabulous Fashions, Invoice 101, dated July 1; the terms are 2/10, n/30.July 5, 20X1Sold two dresses on account to Jeannie Liu, terms 1/10, n/30; issued Sales Slip 788 for $720. The cost of the dresses sold was $504.July 7, 20X1Received Credit Memorandum 210 for $700 from Fabulous Fashions for damaged dresses returned; the goods were purchased on Invoice 101, dated July 1.July 9, 20X1Accepted a return of a dress from Jeannie Liu; the dress was originally sold on Sales Slip 788 of July 5; issued Credit Memorandum 89 for $340. The cost of the returned dress was $238.July 10, 20X1Issued Check 1255 to pay the amount due to Fabulous Fashions for Invoice 101, dated July 1, less the return of July 7 and less the cash discount.July 15, 20X1Received payment from Jeannie Liu for the sale of July 5, less the return of July 9 and less the cash discount.July 15, 20X1Recorded sales on bank credit cards for the two-week period ended July 15, $14,900; the bank charges a 3 percent fee on all credit card sales. The cost of merchandise sold was $10,430.July 17, 20X1Purchased merchandise on account from Southwest Rags with a list price of $3,600, subject to trade discounts of 30 and 10 percent, terms 1/10, n/30, Invoice 2078.July 26, 20X1Paid amount owed to Southwest Rags for the purchase of July 17, less discount, Check 1285.Required:Record the transactions in a general journal.Analyze:What percentage of the total amount due to Fabulous Fashions on July 1 is due to the freight charge? Problem 8.7A Appendix (Static) Recording transactions using the perpetual inventory system. LO 8-7The following transactions took place at Funky Fashions during July 20X1. Funky Fashions uses a perpetual inventory system.DATETRANSACTIONSJuly 1, 20X1 Purchased dresses for $5,200 plus a freight charge of $250 from Fabulous Fashions, Invoice 101, datedJuly 1; the terms are 2/10, n/30.July 5, 20X1 Sold two dresses on account to Jeannie Liu, terms 1/10, n/30; issued Sales Slip 788 for $720. The costof the dresses sold was $504.July 7, 20X1 Received Credit Memorandum 210 for $700 from Fabulous Fashions for damaged dresses returned; the goodswere purchased on Invoice 101, dated July 1.July 9, 20X1 Accepted a return of a dress from Jeannie Liu; the dress was originally sold on Sales Slip 788 of July5; issued Credit Memorandum 89 for $340. The cost of the returned dress was $238.July 10, 20X1 Issued Check 1255 to pay the amount due to Fabulous Fashions for Invoice 101, dated July 1, less thereturn of July 7 and less the cash discount.July 15, 20X1 Received payment from Jeannie Liu for the sale of July 5, less the return of July 9 and less the cashdiscount.July 15, 20X1 Recorded sales on bank credit cards for the two-week period ended July 15, $14,900; the bank charges a3 percent fee on all credit card sales. The cost of merchandise sold was $10,430.July 17, 20X1 Purchased merchandise on account from Southwest Rags with a list price of $3,600, subject to tradediscounts of 30 and 10 percent, terms 1/10, n/30, Invoice 2078.July 26, 20X1 Paid amount owed to Southwest Rags for the purchase of July 17, less discount, Check 1285.Required:Record the transactions in a general journal.

DateGeneral JournalDebitCreditJuly 1, 20X1Merchandise inventory5,450* Accounts payable/Fabulous…

Problem 8.7A Appendix (Static) Recording transactions using the perpetual inventory system. LO 8-7 The following transactions took place at Funky Fashions during July 20X1. Funky Fashions uses a perpetual inventory system. DATE TRANSACTIONS July 1, 20X1 Purchased dresses for $5,200 plus a freight charge of $250 from Fabulous Fashions, Invoice 101, dated July 1; the terms are 2/10, n/30. July 5, 20X1 Sold two dresses on account to Jeannie Liu, terms 1/10, n/30; issued Sales Slip 788 for $720. The cost of the dresses sold was $504. July 7, 20X1 Received Credit Memorandum 210 for $700 from Fabulous Fashions for damaged dresses returned; the goods were purchased on Invoice 101, dated July 1. July 9, 20X1 Accepted a return of a dress from Jeannie Liu; the dress was originally sold on Sales Slip 788 of July 5; issued Credit Memorandum 89 for $340. The cost of the returned dress was $238. July 10, 20X1 Issued Check 1255 to pay the amount due to Fabulous Fashions for Invoice 101, dated July 1, less the return of July 7 and less the cash discount. July 15, 20X1 Received payment from Jeannie Liu for the sale of July 5, less the return of July 9 and less the cash discount. July 15, 20X1 Recorded sales on bank credit cards for the two-week period ended July 15, $14,900; the bank charges a 3 percent fee on all credit card sales. The cost of merchandise sold was $10,430. July 17, 20X1 Purchased merchandise on account from Southwest Rags with a list price of $3,600, subject to trade discounts of 30 and 10 percent, terms 1/10, n/30, Invoice 2078. July 26, 20X1 Paid amount owed to Southwest Rags for the purchase of July 17, less discount, Check 1285. Required: Record the transactions in a general journal.

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 3SEA: JOURNAL ENTRIESPERPETUAL INVENTORY Joan Ziemba owns a small variety store. The following...

DATE	TRANSACTIONS
July 1, 20X1	Purchased dresses for $5,200 plus a freight charge of $250 from Fabulous Fashions, Invoice 101, dated July 1; the terms are 2/10, n/30.
July 5, 20X1	Sold two dresses on account to Jeannie Liu, terms 1/10, n/30; issued Sales Slip 788 for $720. The cost of the dresses sold was $504.
July 7, 20X1	Received Credit Memorandum 210 for $700 from Fabulous Fashions for damaged dresses returned; the goods were purchased on Invoice 101, dated July 1.
July 9, 20X1	Accepted a return of a dress from Jeannie Liu; the dress was originally sold on Sales Slip 788 of July 5; issued Credit Memorandum 89 for $340. The cost of the returned dress was $238.
July 10, 20X1	Issued Check 1255 to pay the amount due to Fabulous Fashions for Invoice 101, dated July 1, less the return of July 7 and less the cash discount.
July 15, 20X1	Received payment from Jeannie Liu for the sale of July 5, less the return of July 9 and less the cash discount.
July 15, 20X1	Recorded sales on bank credit cards for the two-week period ended July 15, $14,900; the bank charges a 3 percent fee on all credit card sales. The cost of merchandise sold was $10,430.
July 17, 20X1	Purchased merchandise on account from Southwest Rags with a list price of $3,600, subject to trade discounts of 30 and 10 percent, terms 1/10, n/30, Invoice 2078.
July 26, 20X1	Paid amount owed to Southwest Rags for the purchase of July 17, less discount, Check 1285.