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 $3,500 under credit terms of 1/10, n/30, FOB destination. 4 At Luu Company's request, paid $300 for freight charges on the August 1 purchase, reducing the amount owed to Luu. 5 Sold rings to Green Ruby for $3,500 under credit terms of 2/10, n/60, FOB destination. The merchandise had cost $2,220. 8 Purchased bracelets from Jane Co. for $4,700 under credit terms of 1/10, n/45, FOB shipping point. 9 Paid $275 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 $390 and been sold for $750. 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 $300. 15 Received balance due from Green Ruby for the August 5 sale. 17 Purchased office equipment from WestCo on credit, $5,500, n/45. 18 Paid the amount due Jane Co. for the August 8 purchase. 19 Sold earrings to Chic Jewellery for $2,550 under credit terms of 2/10, n/30, FOB shipping point. The merchandise had cost $1,140. 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 $3,500 under credit terms of 1/10, n/30, FOB destination. 4 At Luu Company's request, paid $300 for freight charges on the August 1 purchase, reducing the amount owed to Luu. 5 Sold rings to Green Ruby for $3,500 under credit terms of 2/10, n/60, FOB destination. The merchandise had cost $2,220. 8 Purchased bracelets from Jane Co. for $4,700 under credit terms of 1/10, n/45, FOB shipping point. 9 Paid $275 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 $390 and been sold for $750. 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 $300. 15 Received balance due from Green Ruby for the August 5 sale. 17 Purchased office equipment from WestCo on credit, $5,500, n/45. 18 Paid the amount due Jane Co. for the August 8 purchase. 19 Sold earrings to Chic Jewellery for $2,550 under credit terms of 2/10, n/30, FOB shipping point. The merchandise had cost $1,140. 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
Related questions
Topic Video
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 $3,500 under credit terms of 1/10, n/30, FOB destination.
4 At Luu Company's request, paid $300 for freight charges on the August 1 purchase, reducing the amount owed to Luu.
5 Sold rings to Green Ruby for $3,500 under credit terms of 2/10, n/60, FOB destination. The merchandise had cost $2,220.
8 Purchased bracelets from Jane Co. for $4,700 under credit terms of 1/10, n/45, FOB shipping point.
9 Paid $275 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 $390 and been sold for $750. 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 $300.
15 Received balance due from Green Ruby for the August 5 sale.
17 Purchased office equipment from WestCo on credit, $5,500, n/45.
18 Paid the amount due Jane Co. for the August 8 purchase.
19 Sold earrings to Chic Jewellery for $2,550 under credit terms of 2/10, n/30, FOB shipping point. The merchandise had cost
$1,140.
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education