Wildhorse Company commenced operations on July 1. Wildhorse Company uses a periodic inventory system. During July. Wildhorse Company was involved in the following transactions and events: July 2 Purchased $14,600 of merchandise from Suppliers Inc. on account, terms 2/10, n/30, FOB shipping point 3 Returned $1,200 of merchandise to Suppliers Inc. as it was damaged. Received a credit on account from Suppliers 4 Paid $590 of freight costs on July 2 shipment. 8 Sold merchandise for $3,000 cash 11 Paid Suppliers Inc. the full amount owing 15 25 31 Sold merchandise for $6,400 on account, 1/10, n/30, FOB shipping point Received full payment for the merchandise sold on July 15. Wildhorse did a physical count and determined there was $10.100 of inventory on hand. Record the transactions in Wildhorse Company's books. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Wildhorse Company commenced operations on July 1. Wildhorse Company uses a periodic inventory system. During July, Wildhorse
Company was involved in the following transactions and events:
July 2 Purchased $14,600 of merchandise from Suppliers Inc. on account, terms 2/10, n/30, FOB shipping point.
3
Returned $1,200 of merchandise to Suppliers inc. as it was damaged. Received a credit on account from Suppliers
4
Paid $590 of freight costs on July 2 shipment.
8
Sold merchandise for $3,000 cash.
11
Paid Suppliers Inc. the full amount owing
15
25
2 NG
Sold merchandise for $6,400 on account, 1/10, n/30, FOB shipping point.
Received full payment for the merchandise sold on July 25.
31 Wildhorse did a physical count and determined there was $10.100 of inventory on hand.
Record the transactions in Wildhorse Company's books. (Credit account titles are automatically indented when the amount is
entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. Record journal
entries in the order presented in the problem. List all debit entries before credit entries)
Date
Account Titles and Explanation
Merchandise inventory
Accounts Payable
(Purchase on account)
Accounts Payable
Merchandise inventory
(To record purchase return
Merchandise inventory
Cash
(To record cash payment of freight.)
Cash
Sales
(To record sales on account)
Accounts Payable
Cash
(Payment on account)
Accounts Payable
Sales
(To record sales on account.)
Cash
Accounts Receivable
(Collection on account
Debit
14.000
1200
3000
13400
6400
6400
Credit
13
Transcribed Image Text:Wildhorse Company commenced operations on July 1. Wildhorse Company uses a periodic inventory system. During July, Wildhorse Company was involved in the following transactions and events: July 2 Purchased $14,600 of merchandise from Suppliers Inc. on account, terms 2/10, n/30, FOB shipping point. 3 Returned $1,200 of merchandise to Suppliers inc. as it was damaged. Received a credit on account from Suppliers 4 Paid $590 of freight costs on July 2 shipment. 8 Sold merchandise for $3,000 cash. 11 Paid Suppliers Inc. the full amount owing 15 25 2 NG Sold merchandise for $6,400 on account, 1/10, n/30, FOB shipping point. Received full payment for the merchandise sold on July 25. 31 Wildhorse did a physical count and determined there was $10.100 of inventory on hand. Record the transactions in Wildhorse Company's books. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries) Date Account Titles and Explanation Merchandise inventory Accounts Payable (Purchase on account) Accounts Payable Merchandise inventory (To record purchase return Merchandise inventory Cash (To record cash payment of freight.) Cash Sales (To record sales on account) Accounts Payable Cash (Payment on account) Accounts Payable Sales (To record sales on account.) Cash Accounts Receivable (Collection on account Debit 14.000 1200 3000 13400 6400 6400 Credit 13
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