More Info Sep. Purchased merchandise inventory on account from Simmon Wholesaler

Question

More Info Sep. Purchased merchandise inventory on account from Simmon Wholesalers, $6,000. Terms 1/15, n/EOM, FOB shipping point. 3 4 Paid freight bill of $65 on September 3 purchase 4 Purchase merchandise inventory for cash of $1,900 6 Returned $600 of inventory from September 3 purchase 8 Sold merchandise inventory to Hilton Company, $6,200, on account. Terms 3/15, n/35. Cost of goods, $2,542 Purchased merchandise inventory on account from Tristan Wholesalers, $10,500. Terms 1/10, n/30, FOB destination. Made payment to Simmon Wholesalers for goods purchased on September 3 less return and discount Received payment from Hilton Company, less discount. After negotiations, received a $100 allowance from Tristan Wholesalers. Sold merchandise inventory to Jesper Company, $3,500, on account. Terms n/EOM. Cost of goods, $1,610 Made payment, less allowance, to Tristan Wholesalers for goods purchased on September 9 Jesper Company returned $800 of the merchandise sold on September 15. Cost of goods, $368 Sold merchandise inventory to Smithsons for $2,000 on account that cost $780 Terms of 3/10, n/30 was offered, FOB shipping point. As a courtesy to Smithsons, $55 of freight was added to the invoice for which cash was paid by Oceanic Received payment from Smithsons, less discount. Received payment from Jesper Company, less return 9 10 12 13 15 22 23 25 29 30 PrintDone

Explanation / Answer

Answer:

Sept 10 Accounts Payable - Simmon Whole salers a/c         Dr.5400

                              To Cash                                                           5346

                            To Merchandise Inventory                                       54

6000 - 600 = 5400 x 1% = 54

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