Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory SystemThe following selected transactions were completed during April between Swan Company and Bird Company:Apr. 2.Swan Company sold merchandise on account to Bird Company, $14,100, terms FOB shipping point, 2/10, n/30. Swan Company paid freight of $345, which was added to the invoice. The cost of the merchandise sold was $8,900.8.Swan Company sold merchandise on account to Bird Company, $22,000, terms FOB destination, 1/15, n/30. The cost of the merchandise sold was $13,200.8.Swan Company paid freight of $780 for delivery of merchandise sold to Bird Company on April 8.12.Bird Company paid Swan Company for purchase of April 2.18.Swan Company paid Bird Company a refund of $2,000 for defective merchandise in the April 2 purchase. Bird Company agreed to keep the merchandise.23.Bird Company paid Swan Company for purchase of April 8.24.Swan Company sold merchandise on account to Bird Company, $8,900, terms FOB shipping point, n/45. The cost of the merchandise sold was $5,300.26.Bird Company paid freight of $430 on April 24 purchase from Swan Company. DateAccountDebitCreditApr.2-Accounts Receivable-Bird Company vsaleSales vDateAccountDebitCreditApr.2-freightAccounts Receivable-Bird Company vCash vDateAccountDebitCreditApr. 2-cost Cost of Merchandise Sold vMerchandise Inventory vDateAccountDebitCreditApr.8-Accounts Receivable-Bird Company vsaleSales vDateAccountDebitCreditApr. 8-cost Cost of Merchandise Sold vMerchandise Inventory vDateAccountDebitCreditApr. 8-freight Delivery Expense vCash vDateAccountDebitCreditApr. 12 Cash vAccounts Receivable-Bird Company vDateAccountDebitCreditApr. 18 Customer Refunds Payable vCash vDateAccountDebitCreditApr.23Cash vAccounts Receivable-Bird Company v DateAccountDebitCreditApr. 2Merchandise Inventory vAccounts Payable-Swan Company vDateAccountDebitCreditApr. 8Merchandise Inventory vAccounts Payable-Swan Company vDateAccountDebitCreditApr. 12Accounts Payable-Swan CompanyCash vDateAccountDebitCreditApr. 18Cash vMerchandise Inventory vDateAccountDebitCreditApr. 23Accounts Payable-Swan Company vCashDateAccountDebitCreditApr. 24Merchandise Inventory vAccounts Payable-Swan Company vDateAccountDebitCreditApr. 26Merchandise Inventory vCash

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Description: Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory SystemThe following selected transactions were completed during April between Swan Company and Bird Company:Apr. 2.Swan Company sold merchandise on account

A perpetual inventory process is an inventory control process that uses technologies to track…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System

The following selected transactions were completed during April between Swan Company and Bird Company:

Apr. 2.	Swan Company sold merchandise on account to Bird Company, $14,100, terms FOB shipping point, 2/10, n/30. Swan Company paid freight of $345, which was added to the invoice. The cost of the merchandise sold was $8,900.
8.	Swan Company sold merchandise on account to Bird Company, $22,000, terms FOB destination, 1/15, n/30. The cost of the merchandise sold was $13,200.
8.	Swan Company paid freight of $780 for delivery of merchandise sold to Bird Company on April 8.
12.	Bird Company paid Swan Company for purchase of April 2.
18.	Swan Company paid Bird Company a refund of $2,000 for defective merchandise in the April 2 purchase. Bird Company agreed to keep the merchandise.
23.	Bird Company paid Swan Company for purchase of April 8.
24.	Swan Company sold merchandise on account to Bird Company, $8,900, terms FOB shipping point, n/45. The cost of the merchandise sold was $5,300.
26.	Bird Company paid freight of $430 on April 24 purchase from Swan Company.

Date
Account
Debit
Credit
Apr.
2-
Accounts Receivable-Bird Company v
sale
Sales v
Date
Account
Debit
Credit
Apr.
2-
freight
Accounts Receivable-Bird Company v
Cash v
Date
Account
Debit
Credit
Apr. 2-cost Cost of Merchandise Sold v
Merchandise Inventory v
Date
Account
Debit
Credit
Apr.
8-
Accounts Receivable-Bird Company v
sale
Sales v
Date
Account
Debit
Credit
Apr. 8-cost Cost of Merchandise Sold v
Merchandise Inventory v
Date
Account
Debit
Credit
Apr. 8-freight Delivery Expense v
Cash v
Date
Account
Debit
Credit
Apr. 12 Cash v
Accounts Receivable-Bird Company v
Date
Account
Debit
Credit
Apr. 18 Customer Refunds Payable v
Cash v
Date
Account
Debit
Credit
Apr.
23
Cash v
Accounts Receivable-Bird Company v

Date
Account
Debit
Credit
Apr. 2
Merchandise Inventory v
Accounts Payable-Swan Company v
Date
Account
Debit
Credit
Apr. 8
Merchandise Inventory v
Accounts Payable-Swan Company v
Date
Account
Debit
Credit
Apr. 12
Accounts Payable-Swan Company
Cash v
Date
Account
Debit
Credit
Apr. 18
Cash v
Merchandise Inventory v
Date
Account
Debit
Credit
Apr. 23
Accounts Payable-Swan Company v
Cash
Date
Account
Debit
Credit
Apr. 24
Merchandise Inventory v
Accounts Payable-Swan Company v
Date
Account
Debit
Credit
Apr. 26
Merchandise Inventory v
Cash

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