Exercise 4-9 Recording purchases, sales, returns, and shipping LO P1, P2 Following are the merchandising transactions of Dollar Store. Nov. 1 Dollar Store purchases merchandise for $2,400 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. 5 Dollar Store pays cash for the November 1 purchase. 7 Dollar Store discovers and returns $150 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund. 10 Dollar Store pays $120 cash for transportation costs for the November 1 purchase. 13 Dollar Store sells merchandise for $2,592 with terms n/30. The cost of the merchandise is $1,296. 16 Merchandise is returned to the Dollar Store from the November l13 transaction. The returned items are priced at $200 and cost $100; the items were not damaged and were returned to inventory. Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual inventory system and the gross method. 8 Answer is not complete. Debit Credit General Journal No Date 2,400 O Nov 01 Merchandise inventory 2,400 O Accounts payable

Exercise 4-9 Recording purchases, sales, returns, and shipping LO P1, P2 Following are the merchandising transactions of Dollar Store. Nov. 1 Dollar Store purchases merchandise for $2,400 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. 5 Dollar Store pays cash for the November 1 purchase. 7 Dollar Store discovers and returns $150 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund. 10 Dollar Store pays $120 cash for transportation costs for the November 1 purchase. 13 Dollar Store sells merchandise for $2,592 with terms n/30. The cost of the merchandise is $1,296. 16 Merchandise is returned to the Dollar Store from the November l13 transaction. The returned items are priced at $200 and cost $100; the items were not damaged and were returned to inventory. Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual inventory system and the gross method. 8 Answer is not complete. Debit Credit General Journal No Date 2,400 O Nov 01 Merchandise inventory 2,400 O Accounts payable

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter5: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 5.6EX

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Exercise 4-12 (Algo) Recording purchases, sales, returns, and shipping LO P1, P2 Following are the merchandising transactions of Dollar Store. November 1 Dollar Store purchases merchandise for $1,700 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. November 5 Dollar Store pays cash for the November 1 purchase. November 7 Dollar Store discovers and returns $200 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund. November 10 Dollar Store pays $85 cash for transportation costs for the November 1 purchase. November 13 Dollar Store sells merchandise for $1,836 with terms n/30. The cost of the merchandise is $918. November 16 Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $210 and cost $105; the items were not damaged and were returned to inventory. Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual…
QS 4-5 (Algo) Recording purchases, returns, and discounts taken LO P1 Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. November 5 Purchased 1,250 units of product at a cost of $20 per unit. Terms of the sale are 5/10, n/60; the invoice is dated November 5. November 7 Returned 40 defective units from the November 5 purchase and received full credit. November 15 Paid the amount due from the November 5 purchase, minus the return on November 7.
Exercise 7-1 (Algo) Sales journal LO P1 Finer Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. May 2 Sold merchandise costing $420 to B. Facer for $630 cash, invoice number 5703. May 5 Purchased $2,100 of merchandise on credit from Marchant Corporation. May 7 Sold merchandise costing $1,134 to J. Dryer for $1,644, terms 2/10, n/30, invoice number 5704. May 8 Borrowed $8,000 cash by signing a note payable to the bank. May 12 Sold merchandise costing $284 to R. Lamb for $454, terms n/30, invoice number 5705. May 16 Received $1,611 cash from J. Dryer to pay for the purchase of May 7. May 19 Sold used store equipment (noninventory) for $900 cash to Golf, Incorporated. May 25 Sold merchandise costing $470 to T. Taylor for $738, terms n/30, invoice number 5706. Journalize the following transactions that should be recorded in the sales journal. Date Account Debited SALES JOURNAL Invoice Number Accounts Receivable Debit Sales…
Exercise 7-1 (Algo) Sales journal LO P1 Finer Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. May 2 Sold merchandise costing $340 to B. Facer for $510 cash, invoice number 5703. May 5 Purchased $2,550 of merchandise on credit from Marchant Corporation. May 7 Sold merchandise costing $918 to J. Dryer for $1,331, terms 2/10, n/30, invoice number 5704. May 8 Borrowed $8,000 cash by signing a note payable to the bank. May 12 Sold merchandise costing $230 to R. Lamb for $368, terms n/30, invoice number 5705. May 16 Received $1,304 cash from J. Dryer to pay for the purchase of May 7. May 19 Sold used store equipment (noninventory) for $900 cash to Golf, Incorporated. May 25 Sold merchandise costing $390 to T. Taylor for $612, terms n/30, invoice number 5706. Journalize the following transactions that should be recorded in the sales journal. Date May 07 May 12 May 25 SALES JOURNAL Account Debited Invoice Number J. Dryer R.…
QS 4-8 (Algo) Recording sales, returns, and discounts taken LO P2 Prepare journal entries to record each of the following sales transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. April 1 Sold merchandise for $6,000, with credit terms n/30; invoice dated April 1. The cost of the merchandise is $3,600. April 4 The customer in the April 1 sale returned $680 of merchandise for full credit. The merchandise, which had cost $408, is returned to inventory. April 8 Sold merchandise for $2,500, with credit terms of 1/10, n/30; invoice dated April 8. Cost of the merchandise is $1,750. April 11 Received payment for the amount due from the April 1 sale less the return on April 4. View transaction list Journal entry worksheet 1 2 3 4 5 6
Problem #4 Journalizing Merchandising Transactions Janet Matuguinas Trading Company engaged in the following transactions in October: Sold merchandise on credit to Lacson Co., terms n/30, FOB shipping point, P30,000 Purchased merchandise.on credit from Orcajada Co., terms n/30, FOB shipping point, P60,000. Paid Mendoza Co. for shipping charges on merchandise purchased on Oct. 8, P2,5,40. Purchased merchandise on credit from Ortiz Co., terms n/30, FOB shipping, P90,000. Freight prepaid by Ortiz, P6,000. Purchased office supplies on credit from Dedumo Co., terms n/10, P24,000. Oct. 7 8 10 13 14 Sold merchandise on credit to Tagum Co., terms n/30, FOB shipping, P24,000. Returned damaged merchandise received from Orcajada Co. on Oct. 8 for credit, P6,000. Received check payment from Lacson Co. for his purchase on Oct. 7. Returned a portion of the office supplies received on Oct. 13 for credit, P4,000. 14 17 18 19 Sold merchandise for cash, P18,000. Paid Ortiz Co. for purchase of Oct. 10.…
SOLVE IT Exercise 5-5 Recording journal entries for merchandise sales transactions-perpetualLO3 He Journalize each of the following transactions assuming a perpetual inventory system. Feb. 1 Sold merchandise with a cost of $1,500 for $2,100; terms 2/10, n/30, FOB destination. 2 Paid $225 to ship the merchandise sold on February 1. 3 The customer of February 1 returned half of the amount purchased because it was the incorrect product; it was returned to inventory. 4 Sold merchandise to a customer for $3,800 (cost of sales $2,280); terms 2/10, n/30, FOB destination. 11 Collected the amount owing from the customer of February 1. 23 Sold merchandise to a customer for cash of $1,200 (cost of sales $720). 28 The customer of February 4 paid the amount owing.
QS 4-13 (Algo) Recording sales, returns, and allowances; no discounts LO P2 Prepare journal entries to record each of the following sales transactions of TFC Merchandising. TFC uses a perpetual inventory system and the gross method. May 1 Sold merchandise for $640, with credit terms n/60. The cost of the merchandise is $420. May 9 The customer discovers slight defects in some units. TFC gives a price reduction (allowance) and credits the customer's accounts receivable for $44 to compensate for the defects. June 4 The customer in the May 1 sale returned $85 of merchandise for full credit. The merchandise, which had cost $54, is returned to inventory. June 30 Received payment for the amount due from the May 1 sale less the May 9 allowance and June 4 return. View transaction list Sold merchandise for $640, with credit terms n/60. The cost of the merchandise is $420. 3 The customer discovers slight defects in some units. TFC gives a price reduction (allowance) and credits the customer's…
Question 3 Tobermory Merchandising had the following transactions during May: May 5 Purchased $2,700 of merchandise on account, terms 3/15 n/60, FOB shipping point. 9 Paid transportation cost on the May 5 purchase, $250. 10 Returned $400 of defective merchandise purchased on May 5. 15 Paid for the May 5 purchase, less the return and the discount. Required: Assuming the perpetual inventory system is used, prepare the journal entries to record the above transactions.
Exercise 4-9 Recording purchases, sales, returns, and shipping LO P1, P2 Following are the merchandising transactions of Dollar Store. 1 Dollar Store purchases merchandise for $1,500 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. 5 Dollar Store pays cash for the November 1 purchase. 7 Dollar Store discovers and returns $150 of defective merchandise purchased on November 1, and paid for on November 5, for a Nov. cash refund. 10 Dollar Store pays $75 cash for transportation costs for the November 1 purchase. 13 Dollar Store sells merchandise for $1,620 with terms n/30. The cost of the merchandise is $810. 16 Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $205 and cost $103; the items were not damaged and were returned to inventory. Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual inventory system and the gross ces method. View transaction list Journal…
Exercise 5-4 Recording journal entries for merchandise sales transactions-perpetual LO3 Journalize each of the following transactions assuming a perpetual inventory system. You are not required to identify the account number in your journal entries. April May 5 Sold merchandise to a customer for $6,400; terms 3/10, n/30 (cost of sales $3,680). 7 Made a cash sale of $4,700 of merchandise to a customer today (cost of sales $2,660). 8 Sold merchandise for $12,000; terms 3/10, n/30 (cost of sales $7,040). 15 4 Feb. Collected the amount owing from the credit customer of April 5. The customer of April 8 paid the balance owing. The company's chart of accounts include the following: 101 106 119 201 401 Sales 414 Sales returns and allowances 415 Sales discounts 500 Cost of goods sold Cash Accounts Receivable Merchandise inventory Accounts Payable Exercise 5-5 Recording journal entries for merchandise sales transactions-perpetual LO3 Journalize each of the following transactions assuming a…
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