Sales-Related and Purchase-Related Transactions The following were selected from

Question

Sales-Related and Purchase-Related Transactions

The following were selected from among the transactions completed by Wild Adventures Company during December of the current year:

Required:

Journalize the transactions.

For a compound transaction, if an amount box does not require an entry, leave it blank.

Dec. 3

  

  

  

  

Dec. 5

  

  

  

  

Dec. 6-sale

  

  

  

  

Dec. 6-cost

  

  

  

  

Dec. 7

  

  

  

  

Dec. 13

  

  

  

  

  

  

  

  

  

Dec. 15

  

  

  

  

  

  

  

  

  

Dec. 16

  

  

  

  

  

  

  

  

  

Dec. 19-sale

  

  

  

  

Dec 19-cost

  

  

  

  

Dec. 22-sale

  

  

  

  

Dec. 22-cost

  

  

  

  

Dec. 23-sale

  

  

  

  

Dec. 23-cost

  

  

  

  

Dec. 28-return

  

  

  

  

Dec. 28-cost

  

  

  

  

Dec. 31

  

  

  

  

Dec. 3. Purchased merchandise on account from Miramar Co., list price $51,000, trade discount 25%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $1,300 added to the invoice. 5. Purchased merchandise on account from Grand Canyon Co., $14,900, terms FOB destination, 2/10, n/30. 6. Sold merchandise on account to Arches Co., list price $31,000, trade discount 30%, terms 2/10, n/30. The cost of the merchandise sold was $16,100. 7. Returned $2,400 of merchandise purchased on December 5 from Grand Canyon Co. 13. Paid Miramar Co. on account for purchase of December 3, less discount. 15. Paid Grand Canyon Co. on account for purchase of December 5, less return of December 7 and discount. 16. Received cash on account from sale of December 6 to Arches Co., less discount. 19. Sold merchandise on MasterCard, $53,700. The cost of the merchandise sold was $32,200. 22. Sold merchandise on account to Yellowstone River Co., $15,900, terms 2/10, n/30. The cost of the merchandise sold was $9,200. 23. Sold merchandise for cash, $38,000. The cost of the merchandise sold was $22,800. 28. Received merchandise returned by Yellowstone River Co. from sale on December 22, $2,500. The cost of the returned merchandise was $1,500. 31. Paid MasterCard service fee of $2,640.

Explanation / Answer

Date Account Title & Explaination Debit Credit Dec. 3 Inventory 39550 Accounts Payable 39550 Dec. 5 Inventory 14900 Accounts Payable 14900 Dec. 6-sale Account Recievable 21700 Sales 21700 Dec. 6-cost Cost of Good Sold 16100 Inventory 16100 Dec. 7 Accounts Payable 2400 Inventory 2400 Dec. 13 Accounts Payable 39550    Inventory    765 Cash    38785 Dec. 15 Accounts Payable 12500    Inventory    250 Cash    12250 Dec. 16 Cash 21266    Sales Discount 434    Account Recievable    21700 Dec. 19-sale Cash 53700 Sales 53700 Dec 19-cost Cost of Good Sold 32200 Inventory 32200 Dec. 22-sale Account Recievable 15900 Sales 15900 Dec. 22-cost Cost of Good Sold 9200 Inventory 9200 Dec. 23-sale Cash 38000 Sales 38000 Dec. 23-cost Cost of Good Sold 22800 Inventory 22800 Dec. 28-return Sales Return & Allowances 2500 Account Recievable 2500 Dec. 28-cost Inventory 1500 Cost of Good Sold 1500 Dec. 31 Bank Service Fee 2640 Cash 2640

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