Chapter 5, Problem 5.36AP

Journalizing purchase and sale transactions-periodic inventory system

Journalize the following transactions that occurred in March 2016 for Dream Line Company. Assume Dream Line uses the periodic inventory system. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name.

Mar. 3	Purchased merchandise inventory on account from Silton Wholesalers, $6,500. Terms 3/15, n/EOM, FOB shipping point.
4	Paid freight bill of $45 on March 3 purchase.
4	Purchased merchandise inventory for cash of $2,100.
6	Returned $1,100 of inventory from March 3 purchase.
8	Sold merchandise inventory to Hayes Company, $3,200, on account. Terms 1/15, n/35.
9	Purchased merchandise inventory on account from Tarin Wholesalers, $5,300. Terms 3/10, n/30, FOB destination.
10	Made payment to Silton Wholesalers f or goods purchased on March 3, less return and discount.
12	Received payment from Hayes Company, less discount.
13	After negotiations, received a $1 00 allowance from Tarin Wholesalers.
15	Sold merchandise inventory to Julian Company, $2,200, on account. Terms 2110, n/EOM .
22	Made payment, less allowance, to Tarin Wholesalers for goods purchased on March 9.
23	Julian Company returned $100 of the merchandise sold on March 15.
25	Sold merchandise inventory to Smecker for $800 on account. Terms of 2/10, n/30 was offered , FOB shipping point.
26	After negotiations, granted a $200 allowance to Smecker for merchandise sold on March 25.
29	Received payment from Smecker, less allowance and discount.
30	Received payment from Julian Company, less return.