Macomb Wholesale Distributor made the following transactions in yr.3. Record all

Question

Macomb Wholesale Distributor made the following transactions in yr.3.

Record all the transactions in general journal form.

feb 8th Bought inventory on account from Fountain Mfg. company for $8,200.00. terms 1/15, net 45.

feb 10th Paid $200 to Hare transport for shipping charges for inventory we are acquiring

feb 13th Sold merchandise on acct. to Alixx Co. for $10,500. All on acct. sales are with terms 2/10, net 60.

This merchandise cost us $6,300.

feb 16th Fountain Mfg. company issued us a 400.00 credit memo related to our purchase made on feb. 8th.

feb 17th Sold merchandise on acct. to Tyrone Sports Co. for $9,300. This merchandise cost us 7,300

feb 19th Fully paid what is owed to Fountain Mfg.

feb 20th Alixx Co. retuned half of what they purchased on the 13th.

feb 21st Alixx Co. fully paid what they owe us.

feb 28th Tyrone Sports fully paid what they owe us.

Explanation / Answer

feb 8th Bought inventory on account from Fountain Mfg. company for $8,200.00. terms 1/15, net 45.
Merchandise inventory (Dr.) 8200
Accounts payable -- Fountain Mfg. company (Cr.) 8200

feb 10th Paid $200 to Hare transport for shipping charges for inventory we are acquiring
Merchandise inventory (Dr.)
Cash (Cr.) 200

feb 13th Sold merchandise on acct. to Alixx Co. for $10,500. All on acct. sales are with terms 2/10, net 60.
This merchandise cost us $6,300.
Accounts receivable -- Alixx Co. (Dr.) 10500
Sales (Cr.) 10500

Cost of merchandise sold (Dr.) 6300
Merchandise inventory (Cr.) 6300

feb 16th Fountain Mfg. company issued us a 400.00 credit memo related to our purchase made on feb. 8th.
Accounts payable (Dr.) 400
Merchandise inventory (Cr.) 400

feb 17th Sold merchandise on acct. to Tyrone Sports Co. for $9,300. This merchandise cost us 7,300
Accounts receivable -- Tyrone Sports Co. (Dr.) 9300
Sales (Cr.) 9300

Cost of merchandise sold (Dr.) 7300
Merchandise inventory (Cr.) 7300

feb 19th Fully paid what is owed to Fountain Mfg.
Accounts payable -- Fountain Mfg. company (Dr.) 8200
Cash (Cr.) 8118
Merchandise inventory (Cr.) 82 (8200*1%)

feb 20th Alixx Co. retuned half of what they purchased on the 13th.
Sales returns and allowances (Dr.) 5250
Accounts receivable -- Alixx Co. (Cr.) 5250

Merchandise inventory (Dr.) 3150
Cost of goods sold (Cr.) 3150

feb 21st Alixx Co. fully paid what they owe us.
Cash (Dr.) 5145
Sales discounts (Dr.) 105
Accounts receivable -- Alixx Co. (Cr.) 5250

feb 28th Tyrone Sports fully paid what they owe us.
Cash (Dr.) 9300 (No mention of credit terms)
Accounts receivable -- Tyrone Sports Co. (Cr.) 9300

Hope this helps!

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