Chapter 5, Problem P5.46BPGB

Journalizing purchase and sale transation-periddic inventory system

Learning Objective 8 Appendix 58

Journalize the following transactions that occurred in June 2018 Company. Assume Daley uses the periodic inventory system. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. Daley estimates sales returns at the end of each month.

Jun. 3	Purchased merchandise inventory on account from sherry wholesalers, $5,500. Terms 3/15, n/EOM, FOB shipping point.
4	Paid freight bill of $42 on June 3 Purchase.
4	Purchased merchandise inventory for cash of $1,100.
6	Returned $200 of inventory from June 3 purchase.
8	Sold merchandise inventory to Henrich Company, $4,400. on account. Terms 2/15, n/35.
9	Purchased merchandise inventory on account from Tex Wholesalers, $4,600. Terms 1/10, n/30, FOB destination.
10	Made payment to Sherry Wholesalers for goods purchased on June 3, less return and discount.
12	Received payment from Henrich Company, less discount.0
13	After negotiations, received a $300 allowance from tex Wholesalers.
15	Sold marchandise inventory to Jarvis Company, $1,500, on account. Terms n/EOM.
22	Made payment, less allowance, to tex Wholesalers for goods purchased on June 9.
23	Jarvis Company returned $100 of the merchandise sold on June 15.
25	Sold merchandise inventory to Smith for $700 on account. Terms of 3/10, n/30 was offered, FOB shipping point.
29	Received payment from Smith, less discount.
30	Received payment from Jarvis Company, less return.