Blink
Company - Prepare journal entries to
record the following merchandising transactions of Blink Company, which applies
the perpetual inventory system. (Hint: It will help to identify each receivable
and payable; for
example,
record the purchase on July 1 in Accounts Payable—Boden.)
Jul.
1 Purchased merchandise from Boden Company for $6,000 under credit terms of
1/15, n/30, FOB shipping point, invoice dated July 1.
Jul.
2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB
shipping point, invoice dated July 2. The merchandise had cost $500.
Jul.
3 Paid $125 cash for freight charges on the purchase of July 1.
Jul.
8 Sold merchandise that had cost $1,300 for $1,700 cash.
Jul.
9 Purchased merchandise from Leight Co. for $2,200 under credit terms of 2/15,
n/60, FOB destination, invoice dated July 9.
Jul.
11 Received a $200 credit memorandum from Leight Co. for the return of
part of the merchandise purchased on July 9.
Jul.
12 Received the balance due from Creek Co. for the invoice dated July 2, net of
the discount.
Jul.
16 Paid the balance due to Boden Company within the discount period.
Jul.
19 Sold merchandise that cost $800 to Art Co. for $1,200 under credit terms of
2/15, n/60, FOB shipping point, invoice dated July 19.
Jul.
21 Issued a $200 credit memorandum to Art Co. for an allowance on goods sold on
July 19.
Jul.
24 Paid Leight Co. the balance due after deducting the discount.
Jul.
30 Received the balance due from Art Co. for the invoice dated July 19, net of
discount.
Jul.
31 Sold merchandise that cost $4,800 to Creek Co. for $7,000 under credit terms
of 2/10, n/60, FOB shipping point, invoice dated July 31.
TUTORIAL PREVIEW
July 1 Merchandise Inventory........................................................ 6,000
Accounts
Payable—Boden......................................... 6,000
Purchased goods on credit.
2 Accounts
Receivable—Creek Co......................................... 900
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