The Jewel Box purchases jewellery from around the world and sells to local retailers in Canada. Consider the following perpetual system merchandising transactions of The Jewel Box. Use a separate account for each receivable and payable; for example, record the purchase on August 1 in Accounts Payable-Luu Company. Aug. 1 Purchased necklaces from Luu Company for $4,900 under credit terms of 1/10, n/30, FOB destination. 4 At Luu Company's request, paid $440 for freight charges on the August 1 purchase, reducing the amount owed to Luu. 5 Sold rings to Green Ruby for $4,340 under credit terms of 2/10, n/60, FOB destination. The merchandise had cost $2,920. 8 Purchased bracelets from Jane Co. for $6,100 under credit terms of 1/10, n/45, FOB shipping point. 9 Paid $415 shipping charges related to the August 5 sale to Green Ruby. 10 Green Ruby returned the rings purchased from the August 5 sale that had cost $530 and been sold for $890. The merchandise was restored to inventory. 12 After negotiations with Jane Co. concerning problems with the merchandise purchased on August 8, received a credit memo from Jane granting a price reduction of $400. 15 Received balance due from Green Ruby for the August 5 sale. 17 Purchased office equipment from WestCo on credit, $6,900, n/45. 18 Paid the amount due Jane Co. for the August 8 purchase. 19 Sold earrings to Chic Jewellery for $2,250 under credit terms of 2/10, n/30, FOB shipping point. The merchandise I had cost $1,080. 22 Chic Jewellery requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Sent Chic Jewellery a credit memo for $300 to resolve the issue. 29 Received Chic Jewellery's payment of the amount due from the August 19 purchase. 30 Paid Luu Company the amount due from the August 1 purchase. Prepare General Journal entries to record the above transactions.
The Jewel Box purchases jewellery from around the world and sells to local retailers in Canada. Consider the following perpetual system merchandising transactions of The Jewel Box. Use a separate account for each receivable and payable; for example, record the purchase on August 1 in Accounts Payable-Luu Company. Aug. 1 Purchased necklaces from Luu Company for $4,900 under credit terms of 1/10, n/30, FOB destination. 4 At Luu Company's request, paid $440 for freight charges on the August 1 purchase, reducing the amount owed to Luu. 5 Sold rings to Green Ruby for $4,340 under credit terms of 2/10, n/60, FOB destination. The merchandise had cost $2,920. 8 Purchased bracelets from Jane Co. for $6,100 under credit terms of 1/10, n/45, FOB shipping point. 9 Paid $415 shipping charges related to the August 5 sale to Green Ruby. 10 Green Ruby returned the rings purchased from the August 5 sale that had cost $530 and been sold for $890. The merchandise was restored to inventory. 12 After negotiations with Jane Co. concerning problems with the merchandise purchased on August 8, received a credit memo from Jane granting a price reduction of $400. 15 Received balance due from Green Ruby for the August 5 sale. 17 Purchased office equipment from WestCo on credit, $6,900, n/45. 18 Paid the amount due Jane Co. for the August 8 purchase. 19 Sold earrings to Chic Jewellery for $2,250 under credit terms of 2/10, n/30, FOB shipping point. The merchandise I had cost $1,080. 22 Chic Jewellery requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Sent Chic Jewellery a credit memo for $300 to resolve the issue. 29 Received Chic Jewellery's payment of the amount due from the August 19 purchase. 30 Paid Luu Company the amount due from the August 1 purchase. Prepare General Journal entries to record the above transactions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:os
The Jewel Box purchases jewellery from around the world and sells to local retailers in Canada. Consider the following perpetual
system merchandising transactions of The Jewel Box. Use a separate account for each receivable and payable; for example, record
the purchase on August 1 in Accounts Payable-Luu Company.
Aug. 1 Purchased necklaces from Luu Company for $4,900 under credit terms of 1/10, n/38, FOB destination.
4 At Luu Company's request, paid $440 for freight charges on the August 1 purchase, reducing the amount owed to
Luu.
5 Sold rings to Green Ruby for $4,340 under credit terms of 2/10, n/60, F08 destination. The merchandise had cost.
$2,920.
8 Purchased bracelets from Jane Co. for $6,100 under credit terms of 1/10, n/45, FOB shipping point.
9 Paid $415 shipping charges related to the August 5 sale to Green
Ruby.
10 Green Ruby returned the rings purchased from the August 5 sale that had cost $530 and been sold for $890. The
merchandise was restored to inventory.
12 After negotiations with Jane Co. concerning problems with the merchandise purchased on August 8, received a
credit memo from Jane granting a price reduction of $400.
15 Received balance due from Green Ruby for the August 5 sale..
17 Purchased office equipment from WestCo on credit, $6,900, n/45.
18 Paid the amount due Jane Co. for the August 8 purchase.
19 Sold earrings to Chic Jewellery for $2,250 under credit terms of 2/10, n/30, FOB shipping point. The merchandise
had cost $1,080.
22 Chic Jewellery requested a price reduction on the August 19 sale because the merchandise did not meet
specifications. Sent Chic Jewellery a credit memo
or $300 to resolve the issue.
29 Received Chic Jewellery's payment of the amount due from the August 19 purchase.
30 Paid Luu Company the amount due from the August 1 purchase.
Prepare General Journal entries to record the above transactions.
Transcribed Image Text:View transaction list View journal entry worksheet
8
7
5
6
4
No
1
2
3
Date
Aug 01
Aug 04
•
Aug 05
Aug 05
Aug 08
Aug 09
Aug 10
Aug 10
Merchandise inventory
Accounts payable-Luu Company
Accounts payable-Luu Company
Cash
General Journal
Accounts receivable-Green Ruby
Cost of goods sold
Accounts receivable-Green Ruby
Cost of goods sold
Merchandise inventory
Accounts payable Jane Co.
Merchandise inventory
Cash
Sales returns and allowances
Merchandise inventory
Cost of goods sold
Accounts receivable Green Ruby
Debit
350
Credit
350
*******
Ⓡ
*******
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