The following transactions were completed by flashpoint Inc for the month of Mar

Question

The following transactions were completed by flashpoint Inc for the month of March. The company uses the perpetual system for merchandising transactions.05-Mar Purchased merchandise from Mobley Co. for $9,000 under credit terms of 1/15, n/30 FOB shipping point. 06-Mar sold merchandise to Cornerstone Company for $1,200 under credit FOB shipping point The merchandise had cost $750 07-Mar Paid $150 for freight charges on the purchase of March 5. 09-Mar sold merchandise that cost $1,800 for $2,400 cash 10-Mar Purchased merchandise from Richter Co. for $3,450 under credit terms FOB destination. 12-Mar Received a $300 credit memorandum acknowledging the return of merchandise purchased March 10. 16-Mar Received the balance due from Cornerstone Company for the credit sale dated March 6. 16-Mar Sold for cash a piece of office equipment at its original cost, $500. 20-Mar Paid the balance due to Mobley Co. 21-Mar Sold merchandise that cost $1,350 to Harrill Co. for $1,875 under credit terms of 2/15, n/60, FOB shipping point. 22-Mar Issued a $300 credit memorandum to Harrill Co. for an allowance on goods sold March 21. 23-Mar Received a debit memorandum from Harrill Co. for an error that overstated the total invoice by $75. 25-Mar Paid Richter Co. the balance due. 31-M31-Mar Received the balance due from Harrill Co. for the credit sale dated March 21. Required. On the following pages (in the general journal) record the transactions above (using the perpetual system! Explanations are not necessary and leave a line between each entry. In the general journal redo the transactions again using the periodic system.

Explanation / Answer

Perpetual System

Periodic System

Date Account Title & Explaination Debit credit 05-mar Inventory 9000 Accounts Payable 9000 06-mar Accounts Recievable 1200 Sale 1200 Cost of Good Sold 750 Inventory 750 07-March Inventory 150 Cash 150 09-mar Cash 2400 Sale 2400 Cost of Good Sold 1800 Inventory 1800 10-MAR Inventory 3450 Accounts Payable 3450 12-Mar Accounts Payable 300 Inventory 300 16-Mar Cash 1176 Sales Discount 24 Accounts Recievable 1200 16-Mar Cash 500 Office Equipment 500 20-Mar Accounts Payable 9000 Inventory 90 Cash 8910 21-Mar Accounts Recievable 1875 Sale 1875 Cost of Good Sold 1350 Inventory 1350 22-Mar Sales Return & Allowances 300 Accounts Recievable 300 23-Mar Sales Return & Allowances 75 Accounts Recievable 75 25-Mar Accounts Payable 3150 Inventory 63 Cash 8910 31-Mar Cash 1470 Sales Discount 30 Accounts Recievable 1500

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