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 $4,400 under credit terms of 3/10, n/30, FOB destination. 4 At Luu Company's request, paid $390 for freight charges on the August 1 purchase, reducing the amount owed to Luu. 5 Sold rings to Green Ruby for $4,040 under credit teras of 3/10, n/60, FOB destination. The merchandise had cost $2,670. 8 Purchased bracelets from Jane Co. for $5,600 under credit teres of 1/10, n/45, FOB shipping point.) 9 Paid $365 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 $480 and been sold for $840. The merchandise was restored to inventory. 12 After negotiations with Jane Co. concerning problems with the merchandise purchased on August 8, received a credit seno from Jane granting a price reduction of $300. 15 Received balance due from Green Ruby for the August 5 sale. 17 Purchased office equipment from WestCo on credit, $6,400, n/45. 18 Paid the amount due Jane Co. for the August 8 purchase. 19 Sold earrings to Chic Jewellery for $2,000 under credit terms of 2/10, n/30, FOB shipping point. The merchandise had cost $1,030. 22 Chic Jewellery requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Sent Chic Jewellery a credit meno for $250 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 $4,400 under credit terms of 3/10, n/30, FOB destination. 4 At Luu Company's request, paid $390 for freight charges on the August 1 purchase, reducing the amount owed to Luu. 5 Sold rings to Green Ruby for $4,040 under credit teras of 3/10, n/60, FOB destination. The merchandise had cost $2,670. 8 Purchased bracelets from Jane Co. for $5,600 under credit teres of 1/10, n/45, FOB shipping point.) 9 Paid $365 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 $480 and been sold for $840. The merchandise was restored to inventory. 12 After negotiations with Jane Co. concerning problems with the merchandise purchased on August 8, received a credit seno from Jane granting a price reduction of $300. 15 Received balance due from Green Ruby for the August 5 sale. 17 Purchased office equipment from WestCo on credit, $6,400, n/45. 18 Paid the amount due Jane Co. for the August 8 purchase. 19 Sold earrings to Chic Jewellery for $2,000 under credit terms of 2/10, n/30, FOB shipping point. The merchandise had cost $1,030. 22 Chic Jewellery requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Sent Chic Jewellery a credit meno for $250 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: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Transcribed Image Text: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 $4,400 under credit terms of 3/10, n/30, FOB destination.
4 At Luu Company's request, paid $390 for freight charges on the August 1 purchase, reducing the amount owed to Luu.
5 Sold rings to Green Ruby for $4,040 under credit teras of 3/10, n/60, FOB destination. The merchandise had cost $2,670.
8 Purchased bracelets from Jane Co. for $5,600 under credit teres of 1/10, n/45, FOB shipping point.)
9 Paid $365 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 $480 and been sold for $840. The merchandise
was restored to inventory.
12 After negotiations with Jane Co. concerning problems with the merchandise purchased on August 8, received a credit seno from
Jane granting a price reduction of $300.
15 Received balance due from Green Ruby for the August 5 sale.
17 Purchased office equipment from WestCo on credit, $6,400, n/45.
18 Paid the amount due Jane Co. for the August 8 purchase.
19 Sold earrings to Chic Jewellery for $2,000 under credit terms of 2/10, n/30, FOB shipping point. The merchandise had cost
$1,030.
22 Chic Jewellery requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Sent
Chic Jewellery a credit meno for $250 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.
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