Purchased merchandise from Boden Company for $6,800 under credit terms of 2/15,
ID: 2465186 • Letter: P
Question
Purchased merchandise from Boden Company for $6,800 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1.
Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $567.
Paid $135 cash for freight charges on the purchase of July 1.
Purchased merchandise from Leight Co. for $2,600 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9.
Received a $600 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9.
Received the balance due from Creek Co. for the invoice dated July 2, net of the discount.
Paid the balance due to Boden Company within the discount period.
Sold merchandise that cost $1,000 to Art Co. for $1,500 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19.
Issued a $250 credit memorandum to Art Co. for an allowance on goods sold on July 19.
Paid Leight Co. the balance due after deducting the discount.
Received the balance due from Art Co. for the invoice dated July 19, net of discount.
Sold merchandise that cost $5,600 to Creek Co. for $7,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.
Prepare journal entries to record the above merchandising transactions of Blink Company, which applies the perpetual inventory system.
July 1Purchased merchandise from Boden Company for $6,800 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1.
2Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $567.
3Paid $135 cash for freight charges on the purchase of July 1.
8 Sold merchandise that had cost $2,100 for $2,500 cash. 9Purchased merchandise from Leight Co. for $2,600 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9.
11Received a $600 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9.
12Received the balance due from Creek Co. for the invoice dated July 2, net of the discount.
16Paid the balance due to Boden Company within the discount period.
19Sold merchandise that cost $1,000 to Art Co. for $1,500 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19.
21Issued a $250 credit memorandum to Art Co. for an allowance on goods sold on July 19.
24Paid Leight Co. the balance due after deducting the discount.
30Received the balance due from Art Co. for the invoice dated July 19, net of discount.
31Sold merchandise that cost $5,600 to Creek Co. for $7,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.
Explanation / Answer
July 1 Inventory A/c Dr. 6,800
To Boden Company 6,800
July 2 Creek Co Dr. 900
To Revenue A/c 900
Cost of Goods sold A/c Dr. 567
To Inventory A/c 567
July 3 Inventory A/c Dr. 135
To Accounts Payable 135
July 8 Cash A/c Dr. 2,500
To Revenue A/c 2,500
Cost of Goods sold A/c Dr. 2,100
To Inventory A/c 2,100
July 9 Inventory A/c Dr. 2,600
To Leight Co 2,600
July 11 Leight Co Dr. 600
To Inventory A/c 600
July 12 Cash A/c Dr. 882
Discount A/c Dr. 18
To Creek Co. 900
July 16 Boden Co. 6,800
To Discount 136
To Cash 6,664
July 19 Art Co Dr. 1,500
To Revenue A/c 1500
Cost of Goods sold A/c Dr. 1,000
To Inventory A/c 1,000
July 21 Inventory 167
To Cost of goods sold 167
(These 250 sales cost 167)
July 24 Leight Co. Dr. 2000
To Discount 40
To Cash 1960
July 30 Cash A/c Dr. 1225
Discount A/c Dr. 25
To Art co. 1250
July 31 Creek Co Dr. 7,000
To Revenue A/c 7,000
Cost of Goods sold A/c Dr. 5,600
To Inventory A/c 5,600
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