Chegg Study IGuided Sc\' ×w Blackboard learn NAL EXAM × C D ezto.mheducation.com

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Chegg Study IGuided Sc' ×w Blackboard learn NAL EXAM × C D ezto.mheducation.com/hm.tpx For quick acces,place your bookmarks here on the bookmarks bar. Import beskmarksnow. 10.00 points Problem 5-1A Preparing Journal entries for merchandising activities-perpetual system LO P1, P2 July 1 Purchased merc handise from Boden Company for $6,300 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1 2 Sold mechandse to Creek Co for $950 under credt terms of 2/10, n/6O, FOB shipping point, invoice Sobea toer credt tems of 2/10.n6o FOB shipeing point invoice dated July 2. The mechandise had cost $525 3 Paid $110 cash for freight charges on the purc hase of July 1 8 Sold merchandise that had cost $1,600 for $2,000 cash. 9 Purchased merc handise from Leight Co. for $3,000 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9 11 Received a $1,000 credit memorandum from Leight Co. for the return of part of the merchandise 12 Raec ehed the balunce due from Creek Co for the invcice dated Jly 2.ret of the dscount purc hased on July 9 12 Received the balance due from Creek Co for the invoice dated July 2, net of the discount 16 Paid the balance due to Boden Company within the discount period 19 Sold merchandise that cost $1.200 to Art Co for $1,800 under credit terms of 2/15, n/60, FOB shipping point, invoce dated July 19 21 Issued a $300 credit memcrandum to Art Co. for an allowance on goods sold on July 19 24 Paid Leight Co the balance due after deducting the discount 30 Received the balance due from Art Co for the invoice dated July 19, net of discount 31 Sold merchandise that cost $5,100 to Creek Co for $7, 100 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 Accounts payable-Leight 3,000 July 11 Accounts payable-Leight Purchases retums & alowances July 12 Cash Sales discounts Acc Accounts receivable-Creek July 16 Accounts pay able-Boden Sales dacounts Cash 19 Accounts pay able-An Sales Cost of goeds soid

Explanation / Answer

Blink Company

Journal Entries:

Date

Description

Debit

Credit

July 1

Merchandise inventory

$6,300

To Accounts payable

$6,300

July 2

Account receivable

$950

To Sales

$950

July 2

Cost of goods sold

$525

To Merchandise inventory

$525

July 3

Merchandise inventory

$110

To Cash

$110

July 8

Account receivable

$2,000

To Sales

$2,000

Merchandise inventory

$1,600

To Cost of goods sold

$1,600

July9

Merchandise inventory

$3,000

To Accounts payable

$3,000

July 11

Accounts payable

$1,000

To Merchandise inventory -Leight

$1,000

July 12

Cash

$931

Sales discount

    19

To Account receivable

$950

July 16

Accounts payable

$6,300

To merchandise inventory

$126

To cash

$6,174

July 19

Account receivable

$1,800

To Sales

$,1800

Cost of goods sold

$1,200

To Merchandise inventory

$1,200

July 21

Sales return and allowance

$300

To Account receivable

$300

July 24

Accounts payable (3,000-1,000)

2,000

To Merchandise inventory

$40

To Cash

$1,960

July 30

Cash

1,470

Sales discount

     30

To Account receivable (1800- 300)

$1,500

July 31

Account receivable

$7,100

To Sales

$7,100

Cost of goods sold

$5,100

To Merchandise inventory

$5,100

Date

Description

Debit

Credit

July 1

Merchandise inventory

$6,300

To Accounts payable

$6,300

July 2

Account receivable

$950

To Sales

$950

July 2

Cost of goods sold

$525

To Merchandise inventory

$525

July 3

Merchandise inventory

$110

To Cash

$110

July 8

Account receivable

$2,000

To Sales

$2,000

Merchandise inventory

$1,600

To Cost of goods sold

$1,600

July9

Merchandise inventory

$3,000

To Accounts payable

$3,000

July 11

Accounts payable

$1,000

To Merchandise inventory -Leight

$1,000

July 12

Cash

$931

Sales discount

    19

To Account receivable

$950

July 16

Accounts payable

$6,300

To merchandise inventory

$126

To cash

$6,174

July 19

Account receivable

$1,800

To Sales

$,1800

Cost of goods sold

$1,200

To Merchandise inventory

$1,200

July 21

Sales return and allowance

$300

To Account receivable

$300

July 24

Accounts payable (3,000-1,000)

2,000

To Merchandise inventory

$40

To Cash

$1,960

July 30

Cash

1,470

Sales discount

     30

To Account receivable (1800- 300)

$1,500

July 31

Account receivable

$7,100

To Sales

$7,100

Cost of goods sold

$5,100

To Merchandise inventory

$5,100

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