Chapter 5, Problem P5B.39APGA

Journalizing purchase and sale transactions-periodic inventory system

Learning Objective 8 Appendix 58

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

Mar. 3 Purchased merchandise inventory on account form Sidecki Wholesalers, $5,500. Terms 2/15, n/EOM, FOB shipping point.

4 Paid freight bill of $70 on March 3 purchase.

4 Purchased merchandise inventory for cash of $1,000.

6 Returned $900 of inventory from March 3 purchase.

8 Sold merchandise inventory to Herrick Company, $3,400, on account, Terms 1/15, n/35.

9 Purchased merchandise inventory on account from Tex Wholesalers, $5,600.

10. Made payment to Sidecki Wholesalers for goods purchased on March 3, less return and discount.
12 Received payment from Herrick Company, less discount.

13 After negotiations, received a $500 allowance from Tex Wholesalers.

15 Sold merchandise inventory to Jesper Company, $1,700, on account, Terms n/EOM.

22 Made payment, less allowance, to Tex Wholesalers for goods purchases on March 9.

23 Jesper Company returned $300 of the merchandise sold on March 15.

25 Sold merchandise inventory to Salter for $1,000 on account. Terms of 1/10, n/30 was offered, FOB shipping point.
29 Received payment from Salter, less discount.

30 Received payment from Jesper Company, less return.