The following were selected from among the transactions completed by Southmont C
ID: 2487335 • Letter: T
Question
The following were selected from among the transactions completed by Southmont Company during April of the current year: Apr. 3. Purchased merchandise on account from Mandell Co., list price $30,000, trade discount 40%, terms FOB destination, 2/10, n/30. 4. Sold merchandise for cash, $12,800. The cost of merchandise sold was $7,600. 5. Purchased merchandise on account from Quinn Co, $18,750, terms FOB shipping point, 2/10, n/30, with prepaid transaction costs of $715 added to the invoice. 6. Returned $3,500 of merchandise purchased on April 3 from Mandell Co. 11. Sold merchandise on account to Campo. Co., list price $6,000, trade discount 20%, terms 1/10, n/30. The cost of merchandise sold was $3,200. 13. Paid Mandell Co. on account for purchase of April 3, less return of April 6 and discount. 14. Sold merchandise on VISA, $52, 700. The cost of merchandise sold was $31,500. 15. Paid Quinn Co. on account for purchase of April 5, less discount. 21. Received cash on account from sale of April 11 to Campo Co., less discount. 24. Sold merchandise on account to Elkins Co, $8,150, terms 1/10, n/30. The cost of merchandise sold was $4,500. 28. Paid VISA service fee of $1,500. 30. Received merchandise returned by Elkins Co. from sale on April 24, $1,200. The cost of the returned merchandise was $900
Explanation / Answer
Apr.3
Merchandise Inventory
$ 18,000
Accounts Payable—Mandell Co.
$ 18,000
[$30,000 – ($30,000 × 40%)] = $18,000.
Apr.4
Cash
$ 12,800
Sales
$ 12,800
Apr.4
Cost of Merchandise Sold
$ 7,600
Merchandise Inventory
$ 7,600
Apr.5
Merchandise Inventory
$ 19,465
Accounts Payable—Quinn Co.
$ 19,465
Apr.6
Accounts Payable—Mandell Co.
$ 3,500
Merchandise Inventory
$ 3,500
Apr.11
Accounts Receivable—Campo Co.
$ 4,800
Sales
$ 4,800
[$6,000 – ($6,000 × 20%)] = $4,800.
Apr.11
Cost of Merchandise Sold
$ 3,200
Merchandise Inventory
$ 3,200
Apr.13
Accounts Payable—Mandell Co.
$ 14,500
Cash
$ 14,210
Merchandise Inventory
$ 290
Apr.14
Cash
$ 52,700
Sales
$ 52,700
Apr.14
Cost of Merchandise Sold
$ 31,500
Merchandise Inventory
$ 31,500
Apr.15
Accounts Payable—Quinn Co.
$ 19,465
Cash
$ 19,090
Merchandise Inventory
$ 375
Apr.21
Cash
$ 4,752
Sales Discounts
$ 48
Accounts Receivable—Campo Co.
$ 4,800
Apr.24
Accounts Receivable—Elkins Co.
$ 8,150
Sales
$ 8,150
Apr.24
Cost of Merchandise Sold
$ 4,500
Merchandise Inventory
$ 4,500
Apr.28
Credit Card Expense
$ 1,500
Cash
$ 1,500
Apr.30
Sales Returns and Allowances
$ 1,200
Accounts Receivable—Elkins Co.
$ 1,200
Apr.30
Merchandise Inventory
$ 900
Cost of Merchandise Sold
$ 900
Apr.3
Merchandise Inventory
$ 18,000
Accounts Payable—Mandell Co.
$ 18,000
[$30,000 – ($30,000 × 40%)] = $18,000.
Apr.4
Cash
$ 12,800
Sales
$ 12,800
Apr.4
Cost of Merchandise Sold
$ 7,600
Merchandise Inventory
$ 7,600
Apr.5
Merchandise Inventory
$ 19,465
Accounts Payable—Quinn Co.
$ 19,465
Apr.6
Accounts Payable—Mandell Co.
$ 3,500
Merchandise Inventory
$ 3,500
Apr.11
Accounts Receivable—Campo Co.
$ 4,800
Sales
$ 4,800
[$6,000 – ($6,000 × 20%)] = $4,800.
Apr.11
Cost of Merchandise Sold
$ 3,200
Merchandise Inventory
$ 3,200
Apr.13
Accounts Payable—Mandell Co.
$ 14,500
Cash
$ 14,210
Merchandise Inventory
$ 290
Apr.14
Cash
$ 52,700
Sales
$ 52,700
Apr.14
Cost of Merchandise Sold
$ 31,500
Merchandise Inventory
$ 31,500
Apr.15
Accounts Payable—Quinn Co.
$ 19,465
Cash
$ 19,090
Merchandise Inventory
$ 375
Apr.21
Cash
$ 4,752
Sales Discounts
$ 48
Accounts Receivable—Campo Co.
$ 4,800
Apr.24
Accounts Receivable—Elkins Co.
$ 8,150
Sales
$ 8,150
Apr.24
Cost of Merchandise Sold
$ 4,500
Merchandise Inventory
$ 4,500
Apr.28
Credit Card Expense
$ 1,500
Cash
$ 1,500
Apr.30
Sales Returns and Allowances
$ 1,200
Accounts Receivable—Elkins Co.
$ 1,200
Apr.30
Merchandise Inventory
$ 900
Cost of Merchandise Sold
$ 900
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