Wiset Company completes these transactions during April of the current year (the
ID: 2537229 • Letter: W
Question
Wiset Company completes these transactions during April of the current year (the terms of all its credit sales are 2/10, n/30).
Assume that Wiset Co. uses the perpetual inventory system.
Required:
Apr. 2 Purchased $14,300 of merchandise on credit from Noth Company, invoice dated April 2, terms 2/10, n/60. 3 (a) Sold merchandise on credit to Page Alistair, Invoice No. 760, for $4,700 (cost is $2,000). 3 (b) Purchased $1,470 of office supplies on credit from Custer, Inc. Invoice dated April 2, terms n/10 EOM. 4 Issued Check No. 587 to World View for advertising expense, $905. 5 Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $8,600 (cost is $7,000). 6 Received an $65 credit memorandum from Custer, Inc., for the return of some of the office supplies received on April 3. 9 Purchased $12,080 of store equipment on credit from Hal’s Supply, invoice dated April 9, terms n/10 EOM. 11 Sold merchandise on credit to Nic Nelson, Invoice No. 762, for $11,500 (cost is $6,700). 12 Issued Check No. 588 to Noth Company in payment of its April 2 invoice less the discount. 13 (a) Received payment from Page Alistair for the April 3 sale less the discount. 13 (b) Sold $13,700 of merchandise on credit to Page Alistair (cost is $4,500), Invoice No. 763. 14 Received payment from Paula Kohr for the April 5 sale less the discount. 16 (a) Issued Check No. 589, payable to Payroll, in payment of sales salaries expense for the first half of the month, $10,300. Cashed the check and paid employees. 16 (b) Cash sales for the first half of the month are $54,560 (cost is $37,800). (Cash sales are recorded daily from cash register data but are recorded only twice in this problem to reduce repetitive entries.) 17 Purchased $13,000 of merchandise on credit from Grant Company, invoice dated April 17, terms 2/10, n/30. 18 Borrowed $64,000 cash from First State Bank by signing a long-term note payable. 20 (a) Received payment from Nic Nelson for the April 11 sale less the discount. 20 (b) Purchased $980 of store supplies on credit from Hal’s Supply, invoice dated April 19, terms n/10 EOM. 23 (a) Received a $700 credit memorandum from Grant Company for the return of defective merchandise received on April 17. 23 (b) Received payment from Page Alistair for the April 13 sale less the discount. 25 Purchased $11,090 of merchandise on credit from Noth Company, invoice dated April 24, terms 2/10, n/60. 26 Issued Check No. 590 to Grant Company in payment of its April 17 invoice less the return and the discount. 27 (a) Sold $3,270 of merchandise on credit to Paula Kohr, Invoice No. 764 (cost is $2,590). 27 (b) Sold $9,300 of merchandise on credit to Nic Nelson, Invoice No. 765 (cost is $4,520). 30 (a) Issued Check No. 591, payable to Payroll, in payment of the sales salaries expense for the last half of the month, $10,300. 30 (b) Cash sales for the last half of the month are $77,400 (cost is $62,200). Req 1A Req 1B n/30. Review the transactions of Wiset Company and enter those that should be journalized in the cash receipts journal. The terms of all credit sales are 2/10 CASH RECEIPTS JOURNAL Accounts Receivable Cr. Sales Cr. Sales Sales Cr.Other Cost of Goods Sold Dr. Inventory Cr Date Account Credited Cash Dr. Discount Dr.R Accts.Cr. Apr. 30 TotalsExplanation / Answer
Answer 1-a. CASH RECEIPTS JOURNAL Date Account Credited Cash Dr. Sales Discount Dr. Accounts Receivable Cr. Sales Cr. Other Accts. Cr. Cost of Goods Sold Dr. Inventory Cr. 13-Apr Page Alistair 4,606.00 94.00 4,700.00 14-Apr Paula Kohr 8,428.00 172.00 8,600.00 16-Apr Sales 54,560.00 54,560.00 37,800.00 18-Apr Long Term Note Payable 64,000.00 64,000.00 20-Apr Nic Nelson 11,270.00 230.00 11,500.00 23-Apr Page Alistair 13,426.00 274.00 13,700.00 30-Apr Sales 77,400.00 77,400.00 62,200.00 30-Apr Total 233,690.00 770.00 38,500.00 131,960.00 64,000.00 100,000.00 Answer 1-b. SALES JOURNAL Date Account Credited Invoice Number Accounts Receivable Dr. Sales Cr. Cost of Goods Sold Dr. Inventory Cr. 3-Apr Page Alistair 760 4,700.00 2,000.00 5-Apr Paula Kohr 761 8,600.00 7,000.00 11-Apr Nic Nelson 762 11,500.00 6,700.00 13-Apr Page Alistair 763 13,700.00 4,500.00 27-Apr Paula Kohr 764 3,270.00 2,590.00 27-Apr Nic Nelson 765 9,300.00 4,520.00 30-Apr Total 51,070.00 27,310.00
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