My professor wants us to journal these. Seller POV Jan 2. Sold merchandise on ac
ID: 2345229 • Letter: M
Question
My professor wants us to journal these.Seller POV
Jan 2. Sold merchandise on account, $8000, terms FOB shipping point, n/eom. The
cost was $6000.
Jan 8. Sold merchandise on account $ 20,000, terms FOB destination, 1/10, n/30. The
cost was 14,000
16- sold merch on acc 12,000 terms FOB shipping point, 1/10, n/30. cost was 7,200
18- received check for amount due for sale on Jan 8
19 issued credit memo and for 3000 for merch returned from sale jan 16. the cost of
merch returned, 1,800
26-received check for amount due for sale on jan 16 less credit memo of jan 19 and discount
31- paid gallatin delivery service 1,500 for merch delivered during Jan to customers under
shipping terms of FOB destination
31 received check for amount due for sale on jan 2.
BUYER POV
Silvergate Co.
May 3. purchased merch for, 16,000m terms FOB destination, 2/10, n/30.
6- issed debit memo for 4000 of merch returned from purchase on may 3
10 purchased merch, 25000 terms FOB shipping point, n/eom
10-paid freight of 600 on many 10 purchase
13- paid for invoice of may 3 less debit memo of may 6 and discount
31 paid for invoice of may 10
Explanation / Answer
My professor wants us to journal these. Seller POV Jan 2. Sold merchandise on account, $8000, terms FOB shipping point, n/eom. The cost was $6000. Debit: Accounts receivable 8000 Credit: Sales revenue 8000 Debit: Cost of goods sold 6000 Credit: Merchandise inventory 6000 Jan 8. Sold merchandise on account $ 20,000, terms FOB destination, 1/10, n/30. The cost was 14,000 Debit: Accounts receivable 20,000 Credit: Sales revenue 20,000 Debit: Cost of goods sold 14000 Credit: merchandise inventory 14000 16- sold merch on acc 12,000 terms FOB shipping point, 1/10, n/30. cost was 7,200 Debit: Accounts receivable 12000 Credit: Sales revenue 12000 Debit: Cost of goods sold 7200 Credit: merchandise inventory 7200 18- received check for amount due for sale on Jan 8 Debit: Cash 19800 Debit: Sales discounts 200 Credit: Accounts receivable 20,000 19 issued credit memo and for 3000 for merch returned from sale jan 16. the cost of merch returned, 1,800 Debit: Sale returns and allowances 3000 Credit: Accounts receivable 3000 Debit: Merchandise inventory 1800 Credit: Cost of goods sold 1800 26-received check for amount due for sale on jan 16 less credit memo of jan 19 and discount Debit: Cash 8901 Debit: Sales discounts 90 Credit: Accounts receivable 9000 31- paid gallatin delivery service 1,500 for merch delivered during Jan to customers under shipping terms of FOB destination Debit Shipping expense 1500 Credit: Cash 1500 31 received check for amount due for sale on jan 2. Debit: Cash 8000 Credit: Accounts receivable 8000 BUYER POV Silvergate Co. May 3. purchased merch for, 16,000m terms FOB destination, 2/10, n/30. Debit: Merchandise inventory 16000 Credit: Accounts payable 16000 6- issed debit memo for 4000 of merch returned from purchase on may 3 Debit: Accounts payable 4000 Credit: merchandise inventory 4000 10 purchased merch, 25000 terms FOB shipping point, n/eom Debit: Merchandise inventory 25000 Credit: Accounts payable 25000 10-paid freight of 600 on many 10 purchase Debit: merchandise inventory 600 Credit: cash 600 13- paid for invoice of may 3 less debit memo of may 6 and discount Debit: Acounts payable 12000 Credit: cash 11760 Credit: merchandise inventory 240 31 paid for invoice of may 10 Debit: Accounts payable 25000 Credit: Cash 25000
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