Journalize the following transactions that occurred in November 2018 for Colden\
ID: 2329879 • Letter: J
Question
Journalize the following transactions that occurred in November 2018 for Colden's Awesome Park, assuming the perpetual inventory system is being used. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. Colden's Awesome Park estimates sales returns at the end of each month.
Nov. 4 Purchased merchandise inventory on account from Valera Company, $8,000 Terms 2/10, n/EOM, FOB shipping point. 6 Paid freight bill of $140 on November 4 purchase 8 Returned half of the inventory purchased on November 4 from Valera Company 10 Sold merchandise inventory for cash, $2,000. Cost of goods, $800. FOB destination Sold merchandise inventory to Gilmore Corporation, $10,900, on account, terms 3/10, n/EOM. Cost of goods, $5,450. FOB shipping point. Paid freight bill of S60 on November 10 sale Sold merchandise inventory to Cabot Company, $8,500 on account, terms of n/45. Cost of goods, $4,250. FOB shipping point. Paid the amount owed on account from November 4, less return and discount 11 12 13 14 17 Received defective inventory as a sales return from the November 13 sale S200. Cost of goods, $100 Purchased inventory of $3,500 on account from Richmond Corporation. Payment terms were 2/10, n/30, FOB destination Received cash from Gilmore Corporation, less discount. Paid amount owed on account from November 18, less discount. Received cash from Cabot Company, less return Purchased inventory from Sanders Corporation for cash, $11,900, FOB shipping point. Freight in paid to shipping company, $250 18 20 26 28 29Explanation / Answer
Journal Entries Date Account Title and explanation Dr Amount Cr Amount 4-Nov Inventory $8,000 To Accounts Payable-valera Company $8,000 to record purchase of inventory on account 6-Nov Inventory $140 To cash $140 to record the freight on purchase 8-Nov Accounts Payable $4,000 To Inventory $4,000 to record the return of inventory 10-Nov Cash $2,000 To Sales revenue $2,000 to record the sales revenue of inventory in cash cost of goods sold $800 to Inventory $800 to record the transfer of inventory cost to COGS 11-Nov Accounts Receivable -Gilmore Corp $10,900 To Sales revenue $10,900 to record the sales revenue cost of goods sold $5,450 to Inventory $5,450 to record the transfer of inventory cost to COGS 12-Nov Inventory $60 To cash $60 to record the freight on purchase on 10th Nov 13-Nov Accounts Receivable-Cabot Company $8,500 To Sales revenue $8,500 to record the sales revenue cost of goods sold $4,250 to Inventory $4,250 to record the transfer of inventory cost to COGS 14-Nov Accounts Payable-valera Company ($8000-$4000) $4,000 Inventory/cash discount $80 To cash $3,920 to record the payment on account 17-Nov Sales return and Allowance $200 To Accounts Receivable-Cabot Company $200 to record return of defective inventory Merchandise Inventory $100 To Cost of Goods Sold $100 to record return towards cost of goods sold 18-Nov Inventory $3,500 To Accounts Payable-Richmond Corp $3,500 to record purchase of inventory on account 20-Nov cash($10900-$327) $10,573 Sales Discount-10900*3% 327 To Accounts Receivable-Gilmore Corp $10,900 To record the receipt of cash and discount 26-Nov Accounts Payable-Richmond Corp($3500-$3500*2%) $3,430 To Cash $3,430 to record the payment on account 28-Nov Cash($8500-$200) $8,300 To Accounts Receivable-Cabot Corp $8,300 to record the collection on account 29-Nov Inventory $11,900 To Cash $11,900 to record purchase of inventory on cash Inventory $250 To cash $250 to record the freight paid
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.