Following are the merchandising transactors for Chilton Systems On Novomber 1, C

Question

Following are the merchandising transactors for Chilton Systems On Novomber 1, Chilton Systems purchases merchandise for $2,000 on credit with terms of 2/5, n/30, FOB shipping point; invoice dated Novembor 1. On November 5. Chilton Systems pays cash for the November 1 purchase On November 7. Chilton Systems discovers and returns $145 of defective merchandise purchased on November 1 for a cash refund On Novomber 10. Chilton Systems pays $100 cash for transportation costs with the November 1 purchase. On November 13. Chilton Systems sets merchandise for $2,160 on credit. The cost of the merchandise is $1,080 On November 16. the customer returns merchandise from the November 13 transaction The returned items are pneed at $260 and cost $130; the items wero not damaged and were returned to inventory Journalize the above merchandise transactions for Chilton Systems assuming it uses a perpetual inventory system

Explanation / Answer

Date Account title and explanations Debit($) Credit($) Nov-01 Merchandise inventory 2000 Accounts payable 2000 (purchase of merchandise on account) Nov-05 Accounts payable 2000 Discount Receibed 40 ($2000 x 2% = $40) Cash 1960 (payment for merchandise purchased on Nov 1) Nov-07 Cash 145 Merchandise Inventory 145 (Cash refund for defective merchandise) Nov-10 Merchandise inventory 100 Cash 100 (as FOB shipping point, the freight in cost will be added to the cost of the merchandise) Nov-13 Accounts receivable 2160 Sales 2160 (sale on account recorded) Cost of goods sold 1080 Merchandise inventory 1080 (cost of goods sold recorded) Nov-16 Sales return 260 Accounts receivable 260 (sale return reorded) Merchandise inventory 130 Cost of goods sold 130 (cost of goods sold reduced because of sale return)

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.