The Bixby Co. had the following transactions involving the purchase of merchandi
ID: 2468077 • Letter: T
Question
The Bixby Co. had the following transactions involving the purchase of merchandise. Prepare the necessary general journal entries. Any applicable freight costs are prepaid by the seller. The perpetual inventory method is in use. June 16 Purchased merchandise having a price of $6,000 from the Shelby Manufacturing Co. on account with credit terms 10, n/30. Transportation terms F.O.B destination. June 16 Purchased merchandise having a price of $9,000 from the Ajax Supply House on account with credit terms 2/10, n/30. Transportation terms F.O.B shipping point. The freight costs were $175. June 17 Received the goods from Shelby. June 17 Received the goods from Ajax. June 20 Returned for credit merchandise with an invoice price of $800 to Ajax. June 25 Paid Shelby the amount owed. June 28 Paid Ajax the amount owed. June 30 Returned for cash, merchandise with an invoice price of $400 to Shelby. Prepare the necessary general journal entry for June 16, Purchased merchandise having a price of $6,000 from the Shelby Manufacturing Co. on account with credit terms 2/10, n/30. Transportation terms F.O.B destination. _____________________________________ __________ __________ _____________________________________ __________ __________ _____________________________________ __________ __________ Prepare the necessary general journal entry for June 17, Received the goods from Shelby. _____________________________________ __________ __________ _____________________________________ __________ __________ _____________________________________ __________ __________ PRINCIPLES OF ACCOUNTING 1 51 Prepare the necessary general journal entry for June 25. _____________________________________ __________ __________ _____________________________________ __________ __________ _____________________________________ __________ __________ Prepare the necessary general journal entry for June 28. _____________________________________ __________ __________ _____________________________________ __________ __________ _____________________________________ __________ __________
Explanation / Answer
Date Journal Entry Debit Amount Credit Amount June 16th Merchandise in Transit A/c ………….Dr 6000 To Shelby Manufacturing company A/c 5400 To Discount Received A/c 600 (Being Merchandise purchased with discount of 10% if amount is paid within 30 days ) June 16th Merchandise in Transit A/c ………….Dr 9000 To Ajax Supply House A/c 8820 To Discount Received A/c 180 (Being Merchandise purchased with discount of 2% if amount is paid within 30 days ) June 17th Merchandise A/c ………….Dr 15000 Merchandise in Transit A/c 15000 (Being Stock in tarnsit received from Shelby company worth $ 6000 and Ajax woth $ 9000) June 20th Ajax Supply house A/c………………Dr 800 To Merchandise A/c 800 (Being stock returned to Ajax)) June 25th Shelby Manufacturing Company A/c……Dr 5400 To Bank A/c 5400 (Being amount paid Net of discount as the amount is paid within credit period of 30 days) June 28Th Ajax Supply House A/c…………..Dr 8020 To Bank A/c 8020 (Being amount paid Net of discount and Purchase returns as the amount is paid within credit period of 30 days) June 30th Cash A/c ………………….Dr 400 To Merchandise A/c 400 (Being stock returned for Cash to Shelby)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.