journalize the entries for the following transactions. Refer to the chart of acc
ID: 2432384 • Letter: J
Question
journalize the entries for the following transactions. Refer to the chart of accounts for exact wording of account titles. (Non as well as non-bank credit cards used by its customers.)
Mar 1 Sold merchandise for cash, $116300. The cost of the merchandise sold was $72000.
Mar 10 Sold merchandise on account, $755,000. The cost of the merchandise sold was $400,000.
Mar 12 Sold merchandise to customers who used MasterCard and Visa, $1,950,000. The cost of the merchandise sold was $1,250,000.
Mar 17 Sold merchandise to customers who used American Express, $330,000. The cost of the merchandise sold was $230,000.
Mar 31 Paid $81,500 to National Clearing House Credit Co. for service fees for processing MasterCard, Visa
Determining amounts to be paid on invoices
Determine the amounts to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.
Merchandise freight paid by seller.
a. $14,000 - FOB destination, n/30
b. $9900 - FOB shipping point, 2/10, n/30
c. $8500 - FOB shipping point, 2/10, n/30
d. $4600 - FOB shipping point, 2/10, n/30
e. $2800 - FOB destination, 1/10, n/30
Returns and Allowances
a. $700
b. $1200
c. $800
d. $600
e. -
Explanation / Answer
Note: As the chart of accounts is not given, respective account names have been taken.
Date
Account Name
Debit
Credit
March 1.
Cash
116300
Merchandise
72000
Profit on sale of merchandise
44300
Being merchandise sold for cash
March 10.
Bank
755000
Merchandise
400000
Profit on sale of merchandise
355000
Being merchandise sold on account
March 12.
Bank
1950000
Merchandise
1250000
Profit on sale of merchandise
700000
Being merchandise sold
March 17.
Bank
330000
Merchandise
230000
Profit on sale of merchandise
100000
Being merchandise sold
March 31.
Processing fees
81500
Bank
81500
Being service fees paid for processing the payments made through cards
Merchandise freight
Returns and allowances
Discount
Net payment
14000
700
n/30
13300
9900
1200
2/10, n/30
(9900-1200)-((9900-1200)*2%) = 8526
8500
1200
2/10, n/30
(8500-1200)-((8500-1200)*2%) = 7154
4600
600
2/10, n/30
(4600-600)-((4600-600)*2%) = 3920
2800
2800
Note: As the chart of accounts is not given, respective account names have been taken.
Date
Account Name
Debit
Credit
March 1.
Cash
116300
Merchandise
72000
Profit on sale of merchandise
44300
Being merchandise sold for cash
March 10.
Bank
755000
Merchandise
400000
Profit on sale of merchandise
355000
Being merchandise sold on account
March 12.
Bank
1950000
Merchandise
1250000
Profit on sale of merchandise
700000
Being merchandise sold
March 17.
Bank
330000
Merchandise
230000
Profit on sale of merchandise
100000
Being merchandise sold
March 31.
Processing fees
81500
Bank
81500
Being service fees paid for processing the payments made through cards
Merchandise freight
Returns and allowances
Discount
Net payment
14000
700
n/30
13300
9900
1200
2/10, n/30
(9900-1200)-((9900-1200)*2%) = 8526
8500
1200
2/10, n/30
(8500-1200)-((8500-1200)*2%) = 7154
4600
600
2/10, n/30
(4600-600)-((4600-600)*2%) = 3920
2800
2800
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