P4-5 Sales and purchase-related transactions for seller and buyer The following
ID: 2511158 • Letter: P
Question
P4-5 Sales and purchase-related transactions for seller and buyer The following selected transactions were completed during June between Snipes Company and Beejoy Company:
June 8. Snipes Company sold merchandise on account to Beejoy Company, $18,250, terms FOB destination, 2/15, n/eom. The cost of the merchandise sold Was $10,000.
8. Snipes Company paid transportation costs of $400 for delivery of merchandise sold to Beejoy Company on. June 8.
12. Beejoy Company returned $5,000 of merchandise purchased on account on June 8 from Snipes Company. The cost of the merchandise returned was $3,000. 23. Beejoy Company paid Snipes Company for purchase of June 8, less discount and less return of June 12.
24. Snipes Company sold merchandise on account to Beejoy Company, $15,000, terms FOB shipping point, n/eom. The cost of the merchandise sold was $9,000. 26. Beejoy Company paid transportation charges of $375 on June 24 purchase from Snipes Company.
30. Beejoy Company paid Snipes Company on account for purchase of June 24.
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Explanation / Answer
Journal Entry Date Account Debit Credit 08-Jun Account Receivable- B Co. $18,250.00 Sales $18,250.00 ( Being Merchandised sold ) Cost of Goods Sold $10,000.00 Merchandised Inventory $10,000.00 ( Being Cost of Good SolD recorded) Frieght Expense $400.00 Cash $400.00 ( being Frieght expense paid in Cash 12-Jun Sales Return and Allowance $5,000.00 Account Receivable- B Co. $5,000.00 ( Being Merchandised sold return) Merchandised Inventory $3,000.00 Cost of Goods Sold $3,000.00 ( Being returned Merchandised trff in Inventory) 23-Jun Cash $14,945.00 Sales Discount $305.00 Account Receivable $15,250.00 ( being Payment received and cash Discount issued) 24-Jun Account Receivable- B Co. $15,000.00 Sales $15,000.00 ( Being Merchandised sold ) Cost of Goods Sold $9,000.00 Merchandised Inventory $9,000.00 ( Being Cost of Good SolD recorded) 26-Jun Frieght Expense $375.00 Cash $375.00 ( being Frieght expense paid in Cash 30-Jun Cash $9,000.00 Account Receivable $9,000.00
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