Chapter 5, Problem P5.41BPGB

Journalizing purchase and sale transaction

Learning Objective 2, 3

Joumalize the following transactions that occurred in February 2018 for Oceanic. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. Oceanic estimates sales returns at the end of each month.

Sep. 3	Purchased merchandise inventory on account from Silton wholesalers, $5,200. Terms 2/15, n/EOM, FOB shipping point.
4	Paid freight bill of $70 on February 3 purchase.
4	Purchased merchandise inventory for cash of $1,500.
6	Returned $900 of inventory from February 3 purchase.
8	Sold merchandise inventory to Herenda Company, $5,600, on account. Terms 3/15, n/35. Cost of goods, $2,352.
9	Purchased merchandise inventory on account from Teddy Wholesalers, $7,000. Term 3/10, n/30, FOB destination.
10	Made payment to Silton Wholesalers for goods purchased on February 3, less return and discount.
12	Received payment from Herenda Company, less discount.
13	After negotiations, received a $500 allowance from Teddy Wholesalers.
15	Sold merchandise inventory to Jerde Company, $3,400, on account. Terms n/EOM. Cost of goods, $1,496.
22	Made payment, less allowance, to Teddy Wholesalers for goods purchased on February 9.
23	Jordon Company returned $1,000 of the merchandise sold on February 15. Cost of goods, $440.
25	Sold merchandise inventory to Smith for $1,700 on account that cost $663. Terms of 2/10, n/30 was offered, FOB shipping point. As a courtesy to Smith, $70 of freight was added to the invoice for which case was paid by Oceanic.
27	Received payment from Smith, less discount.
28	Received payment from Jerdoe Company, less return.