Accounting
27th Edition
ISBN: 9781337272094
Author: WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher: Cengage Learning,
expand_more
expand_more
format_list_bulleted
Question
Chapter 6, Problem 6.5BPE
To determine
Purchases is an activity of acquiring the merchandise inventory of a business.
Sales is an activity of selling the merchandise inventory of a business.
To Record: The sales transactions in the books of Company S.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Transactions for Buyer and Seller
Wilmington Co. sold merchandise to Angelleti Co. on account, $158,800, terms FOB shipping point, 2/10, n/30. The cost of the merchandise sold is $95,280. Wilmington Co. paid freight of $2.700. Assume that all discounts are taken,
Journalize Wilmington Co.'s entries for the (a) sale, (b) purchase, and (c) payment of amount due. If an amount box does not require an entry, leave it blank.
(a) Accounts Receivable-Angelleti Co.
155,624 V
Sales
155,624
Cost of Merchandise Sold
95,280 V
Merchandise Inventory
95,280
(b) Accounts Receivable-Angelleti Co.
Cash
(c) Cash
Accounts Receivable-Angelleti Co. V
Feedback
Check My Work
Note who the buyer is and who the seller is. The payment is less returns and discounts, and discounts are not taken on returns. If applicable, determine whether the buyer or seller is to pay any freight.
Journalize Angelleti Co.'s entries for (a) sale, and (b) payment of amount due. If an amount box does not require an entry, leave it…
Shore Co. sold merchandise to Blue Star Co. on account, $112,000, terms FOB shipping point, 2/10, n/30. The cost of the merchandise sold is $67,200. Shore Co. paid freight of $1,800. Journalize the entries for Shore Co. and Blue Star Co. for the sale, purchase, and payment of amount due. Assume all discounts are taken.
Merchandise is sold on account to a customer for $14,100, terms FOB shipping point, 2/10, n/30. The seller paid the freight of $590. Determine the following:
a.
Amount of the sale
b.
Amount debited to Accounts Receivable
c.
Amount received within the discount period
Chapter 6 Solutions
Accounting
Ch. 6 - What distinguishes a merchandising business from a...Ch. 6 - Can a business earn a gross profit but incur a net...Ch. 6 - The credit period during which the buyer of...Ch. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Who bears the freight when the terms of sale are...Ch. 6 - Name four accounts that would normally appear in...Ch. 6 - Audio Outfitter Inc., which uses a perpetual...Ch. 6 - Assume that Audio Outfitter Inc. in Discussion...
Ch. 6 - Gross profit During the current year, merchandise...Ch. 6 - Gross profit During the current year, merchandise...Ch. 6 - Purchases transactions Halibut Company purchased...Ch. 6 - Purchases transactions Hoffman Company purchased...Ch. 6 - Prob. 6.3APECh. 6 - Prob. 6.3BPECh. 6 - Sales transactions Journalize the following...Ch. 6 - Prob. 6.4BPECh. 6 - Prob. 6.5APECh. 6 - Prob. 6.5BPECh. 6 - Prob. 6.6APECh. 6 - Sales transactions Journalize the following...Ch. 6 - Customer allowances and returns Assume the...Ch. 6 - Customer allowances and returns Assume the...Ch. 6 - Asset turnover Financial statement data for years...Ch. 6 - Asset turnover Financial statement data for years...Ch. 6 - Determining gross profit During the current year,...Ch. 6 - Determining cost of merchandise sold For a recent...Ch. 6 - Chart of accounts Monet Paints Co. is a newly...Ch. 6 - Prob. 6.4EXCh. 6 - Purchase-related transactions A retailer is...Ch. 6 - Purchase-related transactions The debits and...Ch. 6 - Purchase-related transactions Warwicks Co.. a...Ch. 6 - Purchase-related transactions Journalize entries...Ch. 6 - Sales-related transactions, including the use of...Ch. 6 - Sales-related transactions After the amount due on...Ch. 6 - Prob. 6.11EXCh. 6 - Prob. 6.12EXCh. 6 - Determining amounts to be paid on invoices...Ch. 6 - Sales-related transactions Showcase Co., a...Ch. 6 - Purchase-related transactions Based on the data...Ch. 6 - Prob. 6.16EXCh. 6 - Prob. 6.17EXCh. 6 - Normal balances of merchandise accounts What is...Ch. 6 - Adjusting entry for merchandise inventory...Ch. 6 - Adjusting entries for refunds, allowances, and...Ch. 6 - Customer returns and allowances Zell Company had...Ch. 6 - Income statement and accounts for merchandiser For...Ch. 6 - Income statement for merchandiser The following...Ch. 6 - Determining amounts for items omitted from income...Ch. 6 - Multiple-step income statement On March 31, 2019,...Ch. 6 - Multiple-step income statement Identify the errors...Ch. 6 - Single-step income statement Summary operating...Ch. 6 - Closing the accounts of a merchandiser From the...Ch. 6 - Closing entries; net income Based on the data...Ch. 6 - Closing entries On July 31, 2019, the balances of...Ch. 6 - Asset turnover The Home Depot reported the...Ch. 6 - Asset turnover Kroger Co., a national supermarket...Ch. 6 - Rules of debit and credit for periodic inventory...Ch. 6 - Journal entries using the periodic inventory...Ch. 6 - Identify items missing in determining cost of...Ch. 6 - Cost of merchandise sold and related items The...Ch. 6 - Cost of merchandise sold Based on the following...Ch. 6 - Cost of merchandise sold Based on the following...Ch. 6 - Cost of merchandise sold Identify the errors in...Ch. 6 - Closing entries using periodic inventory system...Ch. 6 - Purchase-related transactions using perpetual...Ch. 6 - Sales-related transactions using perpetual...Ch. 6 - Sales-related and purchase-related transactions...Ch. 6 - Sales-related and purchase-related transactions...Ch. 6 - Multiple-step income statement and balance sheet...Ch. 6 - Single-step income statement Selected accounts and...Ch. 6 - Purchase-related transactions using periodic...Ch. 6 - Sales-related and purchase-related transactions...Ch. 6 - Periodic inventory accounts, multiple-step income...Ch. 6 - Purchase-related transactions using perpetual...Ch. 6 - Sales-related transactions using perpetual...Ch. 6 - Sales-related and purchase-related transactions...Ch. 6 - Sales-related and purchase-related transactions...Ch. 6 - Multiple step income statement and balance sheet...Ch. 6 - Single-step income statement Selected accounts and...Ch. 6 - Purchase-related transactions using periodic...Ch. 6 - Sales-related and purchase-related transactions...Ch. 6 - Periodic inventory accounts, multiple-step income...Ch. 6 - Palisade Creek Co. is a merchandising business...Ch. 6 - Ethics in Action Margie Johnson is a staff...Ch. 6 - Prob. 2CPPCh. 6 - Communication Suzi Nomro operates Watercraft...Ch. 6 - Purchases discounts and accounts payable Rustic...Ch. 6 - Determining cost of purchase The following is an...
Knowledge Booster
Similar questions
- Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is sold on account for 300 plus 3% sales tax, with 2/10, n/30 cash discount terms. (b) Part of the merchandise sold in transaction (a) for 70 plus sales tax is returned for credit. (c) The balance on account for the merchandise sold in transaction (a) is paid in cash within the discount period.arrow_forwardRecord the following transactions in general journal form for Ford Education Outfitters and Romero Textbooks, Inc. a. Ford Educational Outfitters bought merchandise on account from Romero Textbooks, Inc., invoice no. 10594, 1,875.34; terms net 30 days; FOB destination. Romero Textbooks, Inc., paid 93.80 for shipping. b. Ford Education Outfitters received credit memo no. 513A from Romero Textbooks, Inc., for merchandise returned, 135.78.arrow_forwardStatham Co. sold merchandise to Bloomingdale Co. on account, $147,600, terms FOB shipping point, 2/10, n/30. The cost of the merchandise sold is $88,600. Statham Co. paid freight of $2,400. Journalize the entries for Statham Co. and Bloomingdale Co. for the sale, purchase, and payment of amount due. Assume that all discounts are taken.arrow_forward
- Transactions for Buyer and Seller Statham Co. sold merchandise to Bloomingdale Co. on account, $147,600, terms FOB shipping point, 2/10, n/30. The cost of the merchandise sold is $88,600. Statham Co. paid freight of $2,400. Assume that all discounts are taken. Journalize Statham Co.'s entries for the (a) sale, (b) purchase, and (c) payment of amount due. If an amount box does not require an entry, leave it blank. (a) (b) (c) Journalize Bloomingdale Co.'s entries for the (a) sale, and (b) payment of amount due. If an amount box does not require an entry, leave it blank. (a) (b)arrow_forwardTransactions for Buyer and Seller Shore Co. sold merchandise to Blue Star Co. on account, $112,000, terms FOB shipping point, 2/10, n/30. The cost of the merchandise sold is $67,200. Shore Co. paid freight of $1,800. Assume all discounts are taken. Journalize Shore Co.'s entries for the (a) sale on account, (b) payment of freight, and the (c) collection of the amount due. (a) fill in the blank 157fa5fc9fa5fc3_2 fill in the blank 157fa5fc9fa5fc3_4 fill in the blank 157fa5fc9fa5fc3_6 fill in the blank 157fa5fc9fa5fc3_8 (b) fill in the blank 157fa5fc9fa5fc3_10 fill in the blank 157fa5fc9fa5fc3_12 (c) fill in the blank 157fa5fc9fa5fc3_14 fill in the blank 157fa5fc9fa5fc3_16 Journalize Blue Star Co.'s entries for the purchase of (a) merchandise on account and the (b) payment of the amount due. (a) fill in the blank 125136f7bf7f031_2 fill in the blank 125136f7bf7f031_4 (b) fill in the blank…arrow_forwardSales-Related Transactions Merchandise is sold on account to a customer for $16,500, terms FOB shipping point, 1/10, n/30. The seller paid the freight of $630. Determine the following: a. Amount of the sale $ b. Amount debited to Accounts Receivable $ c. Amount received within the discount period $arrow_forward
- Shore Co. sold merchandise to Blue Star Co. on account, $30,500, terms FOB shipping point, 2/15, n/30. The cost of the goods sold is $18,450. Shore paid freight of $700. Journalize the entries for Shore and Blue Star for the sale, purchase, and payment of amount due. Refer to the appropriate company’s Chart of Accounts for the exact wording of account titles. Chart of Accounts-Shore Co. CHART OF ACCOUNTS Shore Co. General Ledger ASSETS 110 Cash 121 Accounts Receivable-Blue Star Co. 125 Notes Receivable 130 Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 218 Sales Tax Payable 219 Customer Refunds Payable 220 Unearned Rent 221 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312…arrow_forwardTransactions for buyer and seller Shore Co. sold merchandise to Blue Star Co. on account, $110,800, terms FOB shipping point, n/30. The cost of the goods sold is $66,480. Shore paid freight of $1,900. Shore Co, issued a credit memo for $7,900 to Blue Star Co. for merchandise that was returned. The cost of the merchandise returned was $4,000. Journalize Shore Co.'s entry for the sale, credit memo, and payment of amount due. If an amount box does not require an entry, leave it blank. Sale Credit Memo Payment Carrow_forwardTransactions for buyer and seller Shore Co. sold merchandise to Blue Star Co. on account, $110,300, terms FOB shipping point, n/30. The cost of the goods sold is $66,180. Shore paid freight of $1,800. Shore Co. issued a credit memo for $8,000 to Blue Star Co. for merchandise that was returned. The cost of the merchandise returned was $3,900. Journalize Shore Co.'s entry for the sale, credit memo, and payment of amount due. If an amount box does not require an entry, leave it blank. Sale Credit Memo Payment Purchase Journalize Blue Star Co.'s entry for the purchase, credit memo, and payment of amount due. If an amount box does not require an entry, leave it blank. Credit Memo 00 00 00 Payment 00 00 00 00 00 00 00arrow_forward
- Merchandise is sold on account to a customer for $17,800, terms FOB shipping point, 1/10, n /30. The seller paid the freight of $530. a. Determine the amount of the sale. $fill in the blank 1 b. Determine the amount debited to Accounts Receivable. $fill in the blank 2 c. Determine the amount of the discount for early payment. $fill in the blank 3 d. Determine the amount due within the discount period. $fill in the blank 4arrow_forwardSales-Related Transactions Merchandise is sold on account to a customer for $21,200, terms FOB shipping point, 2/10, n/30. The seller paid the freight of $360. Determine the following: a. Amount of the sale $fill in the blank 1 b. Amount debited to Accounts Receivable $fill in the blank 2 c. Amount received within the discount periodarrow_forwardMerchandise is sold on account to a customer for $18,300, terms FOB shipping point, 1/10, n/30. The seller paid the freight of $570. Determine the following: a. Amount of the sale b. Amount debited to Accounts Receivable c. Amount recieved within the discount periodarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub