would like assistance with problem p5-2b. Two photos attached with the problem N

Question

would like assistance with problem p5-2b. Two photos attached with the problem

November 10 sale 19 Riggs received payment in full for the net amount due on the November le 24 Arlington returned goods that had originally been billed at $300 (S210 cost) 0 sale. ) ($2 10 cost). Riggs issued a check for $294. Required Prepare the necessary journal entries (a) on the books of Prepare the necessary journal entries (a) on the boo books of Arlington, Inc. Assume that both companies use the perpetual inventory syst Riggs Distributing Company and (b) on th PS-2B. Journal Entries for Merchandise Transactions-Perpetual System Webster Company was esta st month of operations are given below. Unless noted, all transactio e that both companies use the perpetual inventory system. lished on July I. Its sales terms are 2/10, n/30. Credit terms for its purchases vary with the suppl Selected transactions for the first month of operations are given below. Unless noted, all tran are on account and involve merchandise held for resale. Webster Company uses the perpetual inve tory system. 1 Purchased goods from Dawson, Inc. $1,900; terms 1/10, n/3o. 1in 2 Purchased goods from Penn Company, $4.200: terms 2/10, n/30. 12r 3 Paid freight on shipment from Dawson, $100 5 Sold merchandise to Ward, Inc., $ 1.300 ($975 cost). July 1 Purchased goods from Dawson, Inc.. S1,900; terms l

Explanation / Answer

Webster Company Journal Entries for the month of July Date Particulars Debit $ Credit $ 01-Jul Purchase A/c DR 1900 To Dawson Inc A/c 1900 02-Jul Purchase A/c DR 4200 To Penn Company A/c 4200 02-Jul Inventory A/c DR 6100 To Purchase A/c 6100 03-Jul Freight A/c DR 100 To Cash/Bank A/c 100 05-Jul Ward Inc A/c DR 1300 To Sales A/c 1300 05-Jul Cost of Goods Sold A/c DR 975 To Inventory A/c 975 05-Jul Delivery Expense A/c DR 60 To Cash/Bank A/c 60 08-Jul Dawson Inc A/c DR 300 To Purchase Return A/c 300 08-Jul Purchase Return A/c DR 300 To Inventory A/c 300 09-Jul Sales Returns A/c DR 200 To Ward Inc A/c 200 09-Jul Inventory A/c DR 150 To Cost of Goods Sold A/c 150 10-Jul Dawson Inc A/c DR 1600 To Cash/Bank A/c 1584 To Discount Received A/c 16 10-Jul Purchase A/c DR 2400 To Dorn Company A/c 2400 10-Jul Inventory A/c DR 2400 To Purchase A/c 2400 11-Jul Freight A/c DR 130 To Cash/Bank A/c 130 15-Jul Cash/Bank A/c DR 1100 To Ward Inc A/c 1100 15-Jul Colby Corporation A/c DR 3200 To Sales A/c 3200 15-Jul Cost of Goods Sold A/c DR 2400 To Inventory A/c 2400 16-Jul Cheque mailing entails no journal entry 18-Jul Dorn Company A/c DR 100 To Allowance A/c 100 19-Jul Dorn Company A/c DR 2300 To Cash/Bank A/c 2254 To Discount Received A/c 46 25-Jul Cash/Bank A/c DR 3200 To Colby Corporation A/c 3200

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