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correct me if I\'m select account names wrong thank s Sales-Related and Purchase

ID: 2551288 • Letter: C

Question

correct me if I'm select account names wrong thanks

Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System

The following selected transactions were completed during April between Swan Company and Bird Company:

Required:

1. Journalize the April transactions for Bird Company (the buyer).

2. Journalize the April transactions for Swan Company (the seller).

Apr.2. Swan Company sold merchandise on account to Bird Company, $15,100, terms FOB shipping point, 2/10, n/30. Swan Company paid freight of $485, which was added to the invoice. The cost of the merchandise sold was $9,500. 8. Swan Company sold merchandise on account to Bird Company, $31,000, terms FOB destination, 1/15, n/30. The cost of the merchandise sold was $18,600. 8. Swan Company paid freight of $760 for delivery of merchandise sold to Bird Company on April 8. 12. Bird Company paid Swan Company for purchase of April 2. 18. Swan Company paid Bird Company a refund of $2,000 for defective merchandise in the April 2 purchase. Bird Company agreed to keep the merchandise. 23. Bird Company paid Swan Company for purchase of April 8. 24. Swan Company sold merchandise on account to Bird Company, $10,300, terms FOB shipping point, n/45. The cost of the merchandise sold was $6,200. 26. Bird Company paid freight of $320 on April 24 purchase from Swan Company. 30. Swan Company granted a customer allowance (credit memo) to Bird Company for $11,300 for merchandise that was returned from the August 24 purchase. The cost of the merchandise returned was $6,500.

Explanation / Answer

Req 1: IN THE BOOKS OF BIRD COMPANY Date Accounts title and explanations Debit $ Credit $ 2-Apr Merchandise inventoryDr. 15585      Accounts payable 15585 8-Apr Merchandise inventoryDr. 31000      Accounts payable 31000 12-Apr Accounts payable Dr. 15585       Merchandise Inventory (15100*2%) 302      Cash 15283 18-Apr Cash Dr. 2000      Merchandise Inventory 2000 23-Apr Accounts payable Dr. 31000      Merchandise Inventory (31000*1%) 310     cash 30690 24-Apr Merchandise inventoryDr. 10300      Accounts payable 10300 26-Apr Merchandise Inventory 320       Cash Account 320 30-Apr Accounts payable Dr. 11300      Merchandise Inventory 11300 Req 2: IN THE BOOKS OF SWAN COMPANY Date Accounts title and explanations Debit $ Credit $ 2-Apr Accounts receivable Dr. 15100     Sales revenue 15100 2-Apr Accounts receivable Dr. 485       Cash 485 2-Apr Cost of Goods sold Dr. 9500      Merchandise Inventory 9500 8-Apr Accounts receivable Dr. 31000     Sales revenue 31000 8-Apr Cost of Goods sold Dr. 18600      Merchandise Inventory 18600 8-Apr Delivery expense Dr. 760      cash 760 12-Apr cash Dr. 15283 Sales discount Dr. (15100*2%) 302     Accounts receivable 15585 18-Apr Sales discount and allowance Dr. 2000      Cash Account 2000 23-Apr cash Dr. 30690 Sales discount Dr. (31000*1%) 310     Accounts receivable 31000 24-Apr Accounts receivable Dr. 10300     Sales revenue 10300 Cost of Goods sold Dr. 6200      Merchandise Inventory 6200 30-Apr Sales return Dr. 11300     Accounts receivable 11300 30-Apr Merchandise Inventory dr. 6500     Cost of Goods sold 6500