Loose Leaf for Fundamentals of Accounting Principles and Connect Access Card
22nd Edition
ISBN: 9781259542169
Author: John J Wild
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 5, Problem 6E
Exercise 5-6
Recording purchase returns and allowances PI
Refer to Exercise 5-5 and prepare the appropriate
Exercise 5-5
Recording sales returns and allowances P2
Check (1) Dr. Merchandise Inventory $400
Allied Parts was organized on May 1, 2015, and made its first purchase of merchandise on May 3. The purchase was for 2,000 units at a price of S10 per unit. On May 5. Allied Parts sold 1.500 of the units for $14 per unit to Baker Co. Terms of the sale were 2/10, n/60. Prepare entries for Allied Parts to record the May 5 sale and each of the following separate transactions a through c using a perpetual inventory system.
- On May 7, Baker returns 200 units because they did not fit the customer’s needs. Allied Parts restores the units to its inventory.
- On May 8. Baker discovers that 300 units are damaged but are still of some use and. therefore, keeps the units. Allied Parts sends Baker a credit memorandum for $600 to compensate for the damage.
- On May 15, Baker discovers that 100 units are the wrong color. Baker keeps 60 of these units because Allied Parts sends a $120 credit memorandum to compensate. Baker returns the remaining 40 units to Allied Parts. Allied Parts restores the 40 returned units to its inventory.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Chapter 12 Homework
еBook
Show Me How
Print Item
Purchases Journal
Instructions
Chart of Accounts
Supplier List
Purchase Journal
General Ledger
Instructions
Ann Benton, owner of Benton's Galleria, made the following purchases of merchandise on account during the month of October:
Oct.
2 Purchase Invoice No. 321, $1,950, from Boggs Distributors.
Purchase Invoice No. 152, $2,915, from Wolfs Wholesaler.
General Ledger
Uenerai Leuger insu uctionS
10
Purchase Invoice No. 634, $3,565, from Komuro & Co.
16
Purchase Invoice No. 349, $2,845, from Fritz & McCord, Inc.
24
Purchase Invoice No. 587, $3,370, from Boggs Distributors.
GENERAL LEDGER
(
• Account: Accounts Payable
• Account: Purchases
26
Purchase Invoice No. 764, $2,240, from Sanderson Company.
31
Purchase Invoice No. 672, $1,630, from Wolfs Wholesaler.
Required:
%3D
1. Record the transactions in the purchases journal. Total the journal.
2. Post from the purchases journal to the general ledger and accounts payable ledger accounts.…
Exercise 5-3
Prepare journal entries to record the following transactions for a retail store. The company uses a perpet-
ual inventory system and the gross method.
Recording purchases,
purchases retums, and
Apr. 2 Purchased $4,600 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice
purchases allowances
dated April 2, and FOB shipping point.
3 Paid S300 cash for shipping charges on the April 2 purehase.
Returned to Lyon Company unacceptable merchandise that had an invoice price of S600.
Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned
merchandise.
P1
17
18 Purchased S8.500 of merchandise from Frisi Corp. with eredit terms of 1/10. n/30, invoice
dated April 18, and FOB destination.
After negotiations, received from Frist a S500 allowance toward the S8.500 owed on the
April 18 purchase.
Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.
21
Check April28, C Cash,
$7.920
28
CS Scanned…
Chapter 11 Homework
eBook
Show Me How
Print Item
Journalizing Purchases Returns and Allowances and Posting to General Ledger and Accounts Payable Ledger
Instructions
Chart of Accounts
General Journal
General Ledger Accounts Payable Ledger
Instructions
Using page 3 of a general journal and the following general ledger accounts and accounts payable ledger accounts.
March Transactions:
Mar.
Returned merchandise to Tower Industries, $500.
Returned merchandise to A &D Arms, $600.
Returned merchandise to Mighty Mansion, $325.
11
23
>
General Ledger
Account No.
Account
Balance Mar. 1, 20--
202
Accounts Payable
$7,950
501.1
Purchases Returns and Allowances
Accounts Payable Ledger
Name
Balance Mar. 1, 20-
A & D Arms
Mighty Mansion
$2,100
1,350
Tower Industries
4,500
Required:
Journalize and post the transactions.
Chapter 5 Solutions
Loose Leaf for Fundamentals of Accounting Principles and Connect Access Card
Ch. 5 - Prob. 1DQCh. 5 - 2. In comparing the accounts of a merchandising...Ch. 5 - Prob. 3DQCh. 5 - Prob. 4DQCh. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Prob. 8DQCh. 5 - Prob. 9DQCh. 5 - Prob. 10DQ
Ch. 5 - Prob. 11DQCh. 5 - Prob. 12DQCh. 5 - Prob. 13DQCh. 5 - Prob. 14DQCh. 5 - Prob. 15DQCh. 5 - Prob. 1QSCh. 5 - Prob. 2QSCh. 5 - Prob. 3QSCh. 5 - Prob. 4QSCh. 5 - Prob. 5QSCh. 5 - Prob. 6QSCh. 5 - Prob. 7QSCh. 5 - Prob. 8QSCh. 5 - Prob. 9QSCh. 5 - Prob. 10QSCh. 5 - Prob. 11QSCh. 5 - Prob. 12QSCh. 5 - Prob. 13QSCh. 5 - Prob. 14QSCh. 5 - Prob. 15QSCh. 5 - Prob. 16QSCh. 5 - Prob. 17QSCh. 5 - Prob. 18QSCh. 5 - Prob. 1ECh. 5 - Prob. 2ECh. 5 - Prob. 3ECh. 5 - Prob. 4ECh. 5 - Prob. 5ECh. 5 - Exercise 5-6 Recording purchase returns and...Ch. 5 - Prob. 7ECh. 5 - Prob. 8ECh. 5 - Prob. 9ECh. 5 - Prob. 10ECh. 5 - Prob. 11ECh. 5 - Prob. 12ECh. 5 - Prob. 13ECh. 5 - Prob. 14ECh. 5 - Prob. 15ECh. 5 - Prob. 16ECh. 5 - Exercise 5-17A Recording purchases and...Ch. 5 - Prob. 18ECh. 5 - Prob. 19ECh. 5 - Prob. 20ECh. 5 - Prepare journal entries to record the following...Ch. 5 - (
Problem 5-2A
Preparing journal entries for...Ch. 5 - Prob. 3APSACh. 5 - Prob. 4APSACh. 5 - Prob. 5APSACh. 5 - Prob. 6APSACh. 5 - Prob. 1BPSBCh. 5 - Prepare journal entries to record the following...Ch. 5 - Prob. 3BPSBCh. 5 - Prob. 4BPSBCh. 5 - Prob. 5BPSBCh. 5 - Problem 5-6BE Refer to the data and information in...Ch. 5 - Prob. 5SPCh. 5 - Prob. 1GLPCh. 5 - Prepare journal entries to record the following...Ch. 5 - Based on Problem 5-5A Problem 5-5A Preparing...Ch. 5 - Prob. 1BTNCh. 5 - Prob. 2BTNCh. 5 - Prob. 3BTNCh. 5 - Prob. 4BTNCh. 5 - Prob. 5BTNCh. 5 - Prob. 6BTNCh. 5 - Prob. 7BTNCh. 5 - Prob. 8BTNCh. 5 - Prob. 9BTN
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.Similar questions
- JOURNAL ENTRIESPERIODIC INVENTORY Amy Douglas owns a business called Douglas Distributors. The following transactions took place during January of the current year. Journalize the transactions in a general journal using the periodic inventory method. Jan. 5 Purchased merchandise on account from Elite Warehouse, 4,100. 8 Paid freight charge on merchandise purchased, 300. 12 Sold merchandise on account to Memories Unlimited, 5,200. 15 Received a credit memo from Elite Warehouse for merchandise returned, 700. 22 Issued a credit memo to Memories Unlimited for merchandise returned, 400.arrow_forwarders 4-5 i Saved Help Save & Exit Submit [The following information applies to the questions displayed below.] Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost 110 units@ $51.20 per unit 230 units@ $56.20 per unit TonitSold at Retail Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase 270 units@ $86.20 per unit 90 units@ $61.20 per unit 160 units@ $63.20 per unit Mar. 25 Purchase Mar. 29 Sales 140 units@ $96.20 per unit Totals 590 units 410 units 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 70 units from beginning inventory and 200 units from the March 5 purchase; the March 29 sale consisted of 50 units from the March 18 purchase and 90 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest…arrow_forwardQS 4-5 (Algo) Recording purchases, returns, and discounts taken LO P1 Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. November 5 Purchased 1,250 units of product at a cost of $20 per unit. Terms of the sale are 5/10, n/60; the invoice is dated November 5. November 7 Returned 40 defective units from the November 5 purchase and received full credit. November 15 Paid the amount due from the November 5 purchase, minus the return on November 7.arrow_forward
- Specific identification perpetualarrow_forwardExercise 5-4 Recording journal entries for merchandise sales transactions-perpetual LO3 Journalize each of the following transactions assuming a perpetual inventory system. You are not required to identify the account number in your journal entries. April May 5 Sold merchandise to a customer for $6,400; terms 3/10, n/30 (cost of sales $3,680). 7 Made a cash sale of $4,700 of merchandise to a customer today (cost of sales $2,660). 8 Sold merchandise for $12,000; terms 3/10, n/30 (cost of sales $7,040). 15 4 Feb. Collected the amount owing from the credit customer of April 5. The customer of April 8 paid the balance owing. The company's chart of accounts include the following: 101 106 119 201 401 Sales 414 Sales returns and allowances 415 Sales discounts 500 Cost of goods sold Cash Accounts Receivable Merchandise inventory Accounts Payable Exercise 5-5 Recording journal entries for merchandise sales transactions-perpetual LO3 Journalize each of the following transactions assuming a…arrow_forwardWhat am I missing on November 7arrow_forward
- Problem c-3 Sales related and purchase related transactions for seller and buyer periodic inventory system the following selected transaction were completed during may between simkins company and burk com may 6 simkins company sold merchandise on account to burk com. $18,500 6, Simkins Company paid transportation costs of $600 for delivery of merchandise sold O Burk Co. on May 6 Simkins Company sold merchandise on account to Burk Co., $15,750. termsFOB shipping point, n/eom Burk Go. returned merchandise purchased on account on May 6 from Simkins Company. $5,500 Burk Co. paid transportation charges of $300 on May 10 purchase from Simkins Company Simkins Company sold merchandise on account to Burk Co., $30,000, terms FOB shipping point 1/10, n/30. Simkins prepaid transportation costs of $1,750, which were added to the invoice. Burk Go. paid Simkins Company for purchase of May 6, less discount and less return of May 11. Burk Co. paid Simkins Company on account for purchase of…arrow_forwardBookmarks Window Help eBook Chapter 6 Homework 12 Date Jan. 1 Apr. 19 June 30 Perpetual Inventory Using FIFO The following units of a particular item were available for sale during the calendar year: Jan. 1 Inventory 3,900 units at $41 Apr. 19 Sale 2,500 units June 30 4,400 units at $45 Sept. 2 4,800 units Nov. 15 1,800 units at $47 The firm maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method. Present the data in the form illustrated in Exhibit 3. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column. Sept. 2 Nov. 15 Dec. 31 Feedback 0 Check My Work M Purchase Sale Purchase Quantity 4,400 1,800 ✓ Balances Print Item BE Purchases Unit Cost MAR 7 45 v2.cengagenow.com 47 Total Cost $198,000 ✓ 84,600✔ Schedule of Cost of Goods Sold FIFO…arrow_forwardExercise 7-12 (Algo) Posting to subsidiary ledger accounts; preparing a schedule of accounts receivable LO P1 At the end of May, the sales journal of Mountain View appears as follows. Assume beginning inventory balance for May to be $7,398. Date: May 6 May 10 May 17 May 25 May 31 Account Debited Aaron Reckers Sara Reed Anna Page. Sara Reed Totals Date May 20 Sales Journal Invoice Number PR 190 191 192 193 Accounts Receivable Debit Sales Credit 2,470 1,530 681 272 4,953 General Journal Sales Returns and Allowances Accounts Receivable-Anna Page Record allowance to customer. Page 2 Cost of Goods Sold Debit Inventory Credit 1,877 1,262 Mountain View also recorded an allowance (price reduction) given to Anna Page with the following entry. 400 160 3,699 Debit 200 Credit 200 Required: 1. Post to the customer accounts the entries in the sales journal and any portion of the general journal entry that affects a customer's account. 2. Post the sales journal and any portion of the general journal…arrow_forward
- Exam 3 Chapters 4-5 i 16 ! Required information Saved Part 4 of 4 [The following information applies to the questions displayed below.] Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. 5 points Date March 1 March 5 March 9 01-12:07 March 18 March 25 March 29 Activities Beginning inventory Purchase Sales Purchase Purchase Sales Units Acquired at Cost 130 units @ $51.60 per unit 240 units @ $56.60 per unit 100 units @ $61.60 per unit 180 units @ $63.60 per unit Units Sold at Retail 290 units @ $86.60 per unit Totals 650 units 160 units @ $96.60 per unit 450 units 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 80 units from beginning inventory, 210 units from the March 5 purchase, 60 units from the March 18 purchase, and 100 units from the March 25 purchase. Note: Round weighted average cost per unit to two decimals and final…arrow_forwardO MERCHANDISING ACCOUNTING Buyer's retail entries: Problem type 3 Journalize the following transactions for the buyer, Evans Company, using the gross method to account for purchase discounts. Assume a perpetual invertory system. June 6 Purchased merchandise from Cook Company on account, $10,000, terms 2/10, n/30. The goods are shipped FOB shipping point, freight prepaid by seller, $420. Returned to Cook Company merchandise previously purchased on account, $2,000. June 12 June 17 Paid the amount due to Cook Company. E Account Title Credit E Open Grammarly 2022 McGraw Hill LLC All Rights Reserved. Teams of the Date Explanation Check Debit X MacBook Airarrow_forwardCeries Merchandising Unadjusted Trial Balance June 30, 2015 Account Title Debit Credit Cash 155,929.00 28,433.00 Accounts Receivable Merchandise Inventory Transportation Equipment (Purchase on June 2, 2015) Accounts Payable 150,000.00 231,190.00 500,000.00 Celestine, Capital Sales 83,562.00 1,410.00 459,750.00 Sales Discount Purchase Purchase Discount 8,560.00 Salaries Expense Supplies Expense Advertising Expense Rents Expense (Expense on June 3, 2015) 7,500.00 5,490.00 4,800.00 10,000.00 Total 823.312.00 823.312.00 Additional Information: 1. The delivery vehicle with no salvage value has useful life Of 10 years. 2. The 10,000 rental payment is applicable for the months of June and July 2015. (Expense Method) 3. Celestine received a statement of account from Star Oil Çenter on June 30, 2015 reflecting a total bill of 2,180 which represents an unpaid fuel purchases on June 2015. Required: 1.) Prepare 3- Column Worksheet for Unadjusted Trial Balance to Adjusted Trial Balance 中arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Corporate Financial AccountingAccountingISBN:9781305653535Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Corporate Financial AccountingAccountingISBN:9781337398169Author:Carl Warren, Jeff JonesPublisher:Cengage Learning
Financial & Managerial AccountingAccountingISBN:9781337119207Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Corporate Financial Accounting
Accounting
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Corporate Financial Accounting
Accounting
ISBN:9781337398169
Author:Carl Warren, Jeff Jones
Publisher:Cengage Learning
Financial & Managerial Accounting
Accounting
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY