Several purchase transactions of the Chopper Pharmacy are presented below. The credit terms of the entity are 3/10, n/30. Oct. 6 Purchased merchandise for cash, P200,000; FOB shipping point. 12 Purchased merchandise on account, P700,000. 15 Returned merchandise purchased on account, P50,000. 17 Paid supplier the amount due. 19 Paid freight charges of 7,000 on merchandise acquired last Oct. 6.

Several purchase transactions of the Chopper Pharmacy are presented below. The credit terms of the entity are 3/10, n/30. Oct. 6 Purchased merchandise for cash, P200,000; FOB shipping point. 12 Purchased merchandise on account, P700,000. 15 Returned merchandise purchased on account, P50,000. 17 Paid supplier the amount due. 19 Paid freight charges of 7,000 on merchandise acquired last Oct. 6.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Shore Co. sold merchandise to Blue Star Co. on account, $112,000, terms FOB shipping point, 2/10, n/30. The cost of the goods sold is $67,200. Shore Co. paid freight of $1,800. Journalize the entries for Shore and Blue Star for the sale, purchase, and payment of amount due. Refer to the appropriate company’s Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS Shore Co. General Ledger ASSETS 110 Cash 121 Accounts Receivable-Blue Star Co. 125 Notes Receivable 130 Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 218 Sales Tax Payable 219 Customer Refunds Payable 220 Unearned Rent 221 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary…
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