> Problems Group A For all problems, assume the perpetnal inventory system is us

Question

> Problems Group A For all problems, assume the perpetnal inventory system is used unless stated otherwise. Round all numbers to the nearest whole dollar unless stated otherwise. P5-34A Journalizing purchase and sale transactions Journalize the following transactions that occurred in September 2018 for Aquamarines No explanations are needed. Identify each accounts payable and accounts receivable ith the vendor or customer name. Aquamarines estimates sales returns at the end of each month Purchased merchandise inventory on account from Sharpner Wholesalers, $5,500. Terms 2/15, n/EOM, FOB shipping point. Sep. 3 Paid freight bill of $85 on September 3 purchase. Purchased merchandise inventory for cash of $1,600. Returned $1,300 of inventory from September 3 purchase. Sold merchandise inventory to Herman Company, $5,700, on account. Terms 2/15, n/35. Cost of goods, $2,565. Purchased merchandise inventory on account from Tucker Wholesalers, $6,000. Terms 3/10, n/30, FOB destination. Made payment to Sharpner Wholesalers for goods purchased on September 3, less return and discount. Received payment from Herman Company, less discount. After negotiations, received a $500 allowance from Tucker Wholesalers. Sold merchandise inventory to Jerome Company, $2,800, on account. Terms n/EOM. Cost of goods, $1,200. 4 4 6 8 9 10 12 13 15 Made payment, less allowance, to Tucker Wholesalers for goods purchased on September 9 22 Jerome Company returned $200 of the merchandise sold on September 15. Cost of goods, $80. Sold merchandise inventory to Small for $1,800 on account that cost $738 Terms of 3/10, n/30 was offered, FOB shipping point. As a courtesy to Small, $40 of freight was added to the invoice for which cash was paid by Aquamarines Received payment from Small, less discount. Received payment from Jerome Company, less return. 23 25 29 30

Explanation / Answer

Solution:

Journal Entries

Date

General Journal

Debit

Credit

Sep.3

Merchandise Inventory (5500*98%)

$5,390

Accounts Payable

$5,390

Sep.4

Merchandise Inventory

$85

Cash

$85

Sep.4

Merchandise Inventory

$1,600

Accounts Payable

$1,600

Sep.6

Accounts Payable (1300*98%)

$1,274

Merchandise Inventory

$1,274

Sep.8

Accounts Receivable (5700*98%)

$5,586

Sales Revenue

$5,586

Cost of Goods Sold

$2,565

Merchandise Inventory

$2,565

Sep.9

Merchandise Inventory (6000*97% Net of discount)

$5,820

Accounts Payable

$5,820

Sep.10

Accounts Payable (5390 - 1274)

$4,116

Cash

$4,116

Sep.12

Cash

$5,586

Accounts Receivable

$5,586

Sep.13

Accounts Payable

$500

Purchase Returns and Allowances

$500

Sep.15

Accounts Receivable

$2,800

Sales Revenue

$2,800

Cost of Goods Sold

$1,200

Merchandise Inventory

$1,200

Sep.22

Accounts Payable (5820-500)

$5,320

Purchase Discount (bal fig)

$180

Cash (6000 - 500)

$5,500

Sep.23

Sales Returns and Allowances

$200

Accounts Receivable

$200

Merchandise Inventory

$80

Cost of Goods Sold

$80

Sep.25

Accounts Receivable (1800*97%)

$1,746

Sales Revenue

$1,746

Freight Expense

$40

Cash

$40

Sep.29

Cash

$1,746

Accounts Receivable

$1,746

Sep.30

Cash

$2,600

Accounts Receivable (2800 - 200)

$2,600

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Date

General Journal

Debit

Credit

Sep.3

Merchandise Inventory (5500*98%)

$5,390

Accounts Payable

$5,390

Sep.4

Merchandise Inventory

$85

Cash

$85

Sep.4

Merchandise Inventory

$1,600

Accounts Payable

$1,600

Sep.6

Accounts Payable (1300*98%)

$1,274

Merchandise Inventory

$1,274

Sep.8

Accounts Receivable (5700*98%)

$5,586

Sales Revenue

$5,586

Cost of Goods Sold

$2,565

Merchandise Inventory

$2,565

Sep.9

Merchandise Inventory (6000*97% Net of discount)

$5,820

Accounts Payable

$5,820

Sep.10

Accounts Payable (5390 - 1274)

$4,116

Cash

$4,116

Sep.12

Cash

$5,586

Accounts Receivable

$5,586

Sep.13

Accounts Payable

$500

Purchase Returns and Allowances

$500

Sep.15

Accounts Receivable

$2,800

Sales Revenue

$2,800

Cost of Goods Sold

$1,200

Merchandise Inventory

$1,200

Sep.22

Accounts Payable (5820-500)

$5,320

Purchase Discount (bal fig)

$180

Cash (6000 - 500)

$5,500

Sep.23

Sales Returns and Allowances

$200

Accounts Receivable

$200

Merchandise Inventory

$80

Cost of Goods Sold

$80

Sep.25

Accounts Receivable (1800*97%)

$1,746

Sales Revenue

$1,746

Freight Expense

$40

Cash

$40

Sep.29

Cash

$1,746

Accounts Receivable

$1,746

Sep.30

Cash

$2,600

Accounts Receivable (2800 - 200)

$2,600

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