Presented below are transactions related to R. Humphrey Company. Prepare the jou

Question

Presented below are transactions related to R. Humphrey Company.

Prepare the journal entries to record these transactions on the books of R. Humphrey Company usiing a perpetual inventory system.

Assume that R. Humphrey Company received the balance due from Frazier. Co on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt or payment on January 2.

Presented below are transactions related to R. Humphrey Company. 1. On December 3, R. Humphrey Company sold $572,300 of merchandise to Frazier Co., terms 3/10, n/30, FOB destination. R. Humphrey paid 5400 for freight charges. The cost of the merchandise sold was 5371,400. 2. On December 8, Frazier Co. was granted an allowance of $25,200 for merchandise purchased on December 3. 3. On December 13, R. Humphrey Company received the balance due from Frazier Co Prepare the journal entries to record these transactions on the books of R. Humphrey Company using a perpetual Inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Debit Credit 1. (To recond aredit sale) To record cost of merchandise sold) (To recond freight charges) 2. 3. Dec. 13

Explanation / Answer

Ans)

a)

1.Dec. 3 Accounts Receivable 572300

Sales Revenue 572300

(To record credit sale)

Dec. 3 Cost of Goods Sold 371400

Inventory 371400

(To record cost of merchandisesold)

Dec. 3 Freight-Out 400

Cash 400

(To record freight charges)

2. Dec. 8 Sales Returns and Allowances 25200

Accounts Receivable 25200

3. Dec. 13 Cash 530687

Sales Discounts 16413

Accounts Receivable 547100

b) Jan. 2 Cash 547100

Accounts Receivable547100

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