PROBLEM#1 Journalize the following entries for Oglala Supplies: . . 1-Jan Oglala

Question

PROBLEM#1 Journalize the following entries for Oglala Supplies: . . 1-Jan Oglala purchases $100,000 of merchandise from Loopy and Co., terms 1/10,net 30 3-Jan Oglala returns $10,000 to Loopy for full credit 4-Jan Oglala sells $40,000 of merchandise to Doody and Co., cost $24,000 terms 2/15, net 45 6-Jan Oglala pays Loopy amount due 10-Jan Oglala receives return of $8,000, cost $4800 of merchandise from Doody from Jan 4. 13-Jan Doody pays amount due transaction 15-Jan Oglala pays freight on Loopy purchase to Fed Ex, $400 16-Jan Oglala pays freight to Fed Ex on Doody sale, $800

Explanation / Answer

Journal Enteries

Jan-1:-

Debit Purchases = 100,000

Credit Loopy & Co = 100,000

Jan-3:-

Debit Loopy & Co = 10000

Credit Purchase Returns = 10000

Jan-4:-

Debit Doody & Co = 40000

Credit Sales = 40000

Jan-6:-

Debit Loopy & Co = 90000

Credit Bank = 90000

Jan-10

Debit Sales Return = 8000

Credit Doody & Co = 8000

Jan-13

Debit Bank = 32000

Credit Doody & Co = 32000

Debit Freight (400+800) = 1200

Credit Bank = 1200

Journal Enteries

Jan-1:-

Debit Purchases = 100,000

Credit Loopy & Co = 100,000

Jan-3:-

Debit Loopy & Co = 10000

Credit Purchase Returns = 10000

Jan-4:-

Debit Doody & Co = 40000

Credit Sales = 40000

Jan-6:-

Debit Loopy & Co = 90000

Credit Bank = 90000

Jan-10

Debit Sales Return = 8000

Credit Doody & Co = 8000

Jan-13

Debit Bank = 32000

Credit Doody & Co = 32000

Debit Freight (400+800) = 1200

Credit Bank = 1200

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