Richard Co. distributes Shoes to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of June, Richard’s inventory consisted of Shoes costing £1,200. During the month of July, 2021, the following merchandising transactions occurred. July 1 Purchased Shoes on account for £1,620 from Trunk Manufacturers, FOB destination, terms 2/10, n/30. The appropriate party also made a cash payment of £100 for freight on this date July 3 Paid Trunk Manufacturers in full. July 9 Sold Shoes on account to Satchel World for £2,000. The cost of Shoes sold was £1,400. July 12 Received payment in full from Satchel World. July 17 Sold Shoes on account to Lady GoGo for £1,400. The cost of the Shoes sold was £1,030. July 18 Purchased Shoes on account for £2,800 from Holiday Manufacturers, FOB shipping point, terms 1/10, n/30. The appropriate party also made a cash payment of £125 for freight on this date. July 20 Received £300 credit (including freight) for Shoes returned to Holiday Manufacturers. July 21 Received payment in full from Lady GoGo. July 22 Sold Shoes on account to Vagabond for £2,400. The cost of Shoes sold was £1,350. July 30 Paid Holiday Manufacturers in full. July 31 Granted Vagabond £200 credit for Shoes returned costing £120. Richard’s chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold. Required: Journalize the transactions for the month of July for Richard using a perpetual inventory system
Richard Co. distributes Shoes to retail stores and extends credit terms of 1/10, n/30
to all of its customers. At the end of June, Richard’s inventory consisted of Shoes costing
£1,200. During the month of July, 2021, the following merchandising transactions occurred.
July 1 Purchased Shoes on account for £1,620 from Trunk Manufacturers, FOB destination,
terms 2/10, n/30. The appropriate party also made a cash payment of £100 for freight on
this date
July 3 Paid Trunk Manufacturers in full.
July 9 Sold Shoes on account to Satchel World for £2,000. The cost of Shoes sold was
£1,400.
July 12 Received payment in full from Satchel World.
July 17 Sold Shoes on account to Lady GoGo for £1,400. The cost of the Shoes sold was
£1,030.
July 18 Purchased Shoes on account for £2,800 from Holiday Manufacturers, FOB shipping
point, terms 1/10, n/30. The appropriate party also made a cash payment of £125 for
freight on this date.
July 20 Received £300 credit (including freight) for Shoes returned to Holiday
Manufacturers.
July 21 Received payment in full from Lady GoGo.
July 22 Sold Shoes on account to Vagabond for £2,400. The cost of Shoes sold was £1,350.
July 30 Paid Holiday Manufacturers in full.
July 31 Granted Vagabond £200 credit for Shoes returned costing £120.
Richard’s chart of accounts includes the following: No. 101 Cash, No. 112
No. 120 Inventory, No. 201 Accounts Payable, No. 401 Sales Revenue, No. 412 Sales Returns
and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold.
Required:
Journalize the transactions for the month of July for Richard using a perpetual inventory system.
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