Purchased merchandise inventory on account from Silton Wholesalers, $5,200. Terms 2/15, n/EOM, FOB shipping point. Feb. 3 Paid freight bill of $70 on February 3 purchase. 4 Purchased merchandise inventory for cash of $1,500. Returned $900 of inventory from February 3 purchase. Sold merchandise inventory to Herenda Company, $5,600, on account. Terms 3/15, n/35. Cost of goods, $2,352. 8 Purchased merchandise inventory on account from Teddy Wholesalers, $7,000. Terms 1/10, n/30, FOB destination. Made payment to Silton Wholesalers for goods purchased on February 3, less return and discount. 10 12 Received payment from Herenda Company, less discount. 13 After negotiations, received a $500 allowance from Teddy Wholesalers. Sold merchandise inventory to Jordon Company, $3,400, on account. Terms n/EOM. Cost of goods, $1,496. 15 Made payment, less allowance, to Teddy Wholesalers for goods purchased on February 9. 22 Jordon Company returned $1,000 of the merchandise sold on February 15. Cost of goods, $440. 23 25 Sold merchandise inventory to Smith for $1,700 on account that cost $663. Terms of 2/10, n/30 were offered, FOB shipping point. As a courtesy to Smith, $70 of freight was added to the invoice for which cash was paid by Oceanic. 27 Received payment from Smith, less discount. 28 Received payment from Jordon Company, less return.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 7PB: Selected data on merchandise inventory, purchases, and sales for Jaffe Co. and Coronado Co. are as...

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Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the nearest whole dollar unless stated otherwise.

Journalizing purchase and sale transactions

Journalize the following transactions that occurred in February 2018 for Oceanic No explanations arc needed. Identify each accounts payable and accounts receivable with the vendor or customer Oceanic estimates sales returns at the end of each month.

Purchased merchandise inventory on account from Silton Wholesalers,
$5,200. Terms 2/15, n/EOM, FOB shipping point.
Feb. 3
Paid freight bill of $70 on February 3 purchase.
4
Purchased merchandise inventory for cash of $1,500.
Returned $900 of inventory from February 3 purchase.
Sold merchandise inventory to Herenda Company, $5,600, on account.
Terms 3/15, n/35. Cost of goods, $2,352.
8
Purchased merchandise inventory on account from Teddy Wholesalers,
$7,000. Terms 1/10, n/30, FOB destination.
Made payment to Silton Wholesalers for goods purchased on February 3,
less return and discount.
10
12
Received payment from Herenda Company, less discount.
13
After negotiations, received a $500 allowance from Teddy Wholesalers.
Sold merchandise inventory to Jordon Company, $3,400, on account.
Terms n/EOM. Cost of goods, $1,496.
15
Made payment, less allowance, to Teddy Wholesalers for goods purchased
on February 9.
22
Jordon Company returned $1,000 of the merchandise sold on February
15. Cost of goods, $440.
23
25
Sold merchandise inventory to Smith for $1,700 on account that cost
$663. Terms of 2/10, n/30 were offered, FOB shipping point. As a courtesy
to Smith, $70 of freight was added to the invoice for which cash was paid
by Oceanic.
27
Received payment from Smith, less discount.
28
Received payment from Jordon Company, less return.

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