Chapter 5, Problem 5.38BP

Journalizing purchase and sale transactions

Journalize the following transaction s that occurred in February 2016 for Faucet. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name.

Feb.3	Purchased merchandise inventory on account from Sidecki Wholesalers, $3,500. Terms 2/15, n/EOM, FOB shipping point.
4	Paid freight bill of $75 on February 3 purchase.
4	Purchased merchandise inventory for cash of $2,200.
6	Returned $800 of inventory from February 3 purchase.
8	Sold merchandise inventory to Harvey Company, $5,700, on account. Terms 2/15, n/35 . Cost of goods, $2,508.
9	Purchased merchandise inventory on account f rom Teaton Wholesalers, $6,000. Terms 2/10, n/30, FOB destination.
10	Made payment to Sidecki Wholesa lers for goods purchased on Feruary 3, less return and discount.
12	Received payment from Harvey Company, less discount.
13	After negotiations, received a $1 00 allowance from Teaton Wholesalers.
15	Sold merchandise inventory to Jackson Company, $2,900, on account. Terms 3/10, n/EOM. Cost of goods, $1,276.
22	Made payment, less allowance, to Teaton Wholesalers for goods purchased on February 9.
23	Jackson Company returned $500 of the merchandise sold on February 15. Cost of goods, $220.
25	Sold me rchandise inve ntory to Seeker fo r $2,000 on account that cost $880. Terms of 2/1 0, n/30 were offered, FOB shipp in g point. As a courtesy to Seeker, $85 of freight was added to the invoice for which cash was paid by Faucet.
26	After negotiations, granted a $1 00 allowance to Seeker for merchandise purchased on February 25.
27	Received payment from Seeker, less allowance and discount.
28	Received payment from Jackson Company, less return.