3 of 20 (1 complete) More Info Sep. 3 Purchased merchandise inventory on account

Question

3 of 20 (1 complete) More Info Sep. 3 Purchased merchandise inventory on account from Sheldon Wholesalers, $7,000. Terms 2/15, n/EOM, FOB shipping point. 4 Paid freight bill of $80 on September 3 purchase. 4 Purchase merchandise inventory for cash of $1,600. 6 Returned $900 of inventory from September 3 purchase. 8 Sold merchandise inventory to Herman Company, $6,200, on account. Terms 2/15, n/35. Cost of goods, $2,666. Purchased merchandise inventory on account from Tex Wholesalers, $9,000. Terms 2/10, n/30, FOB destination. 9 Made payment to Sheldon Wholesalers for goods purchased on September 3, less return and discount. 10 Received payment from Herman Company, less discount. 12 13 15 After negotiations, received a $300 allowance from Tex Wholesalers. Sold merchandise inventory to Jesper Company, $2.900, on account. Terms 2/10, n/EOM. Cost of goods, $1,160 Made payment, less allowance, to Tex Wholesalers for goods purchased on September 9. Jesper Company returned $400 of the merchandise sold on September 15. Cost of goods, $160. Sold merchandise inventory to Smithsons for $1,600 on account that cost $608. Terms of 2/10 n/30 were offered. FOR shinnina noint. As a courtesv to Smithsons 22 23 25 PrintDone MacBook Air

Explanation / Answer

Journal Entry Date Particulars Dr. Amt. Cr. Amt. 3-Sep Inventory    7,000.00    Accounts Payable - Sheldon Wholesalers    7,000.00 (To record the inventory purchased) 4-Sep Inventory          80.00    Cash          80.00 (To record the freight paid) 4-Sep Inventory    1,600.00    Cash    1,600.00 (To record the inventory purchased) 6-Sep Accounts Payable - Sheldon Wholesalers       900.00    Inventory       900.00 (To record the inventory purchase return ) 8-Sep Accounts Receivable - Herman Co.    6,200.00    Sales    6,200.00 (To record the sales) Cost of Goods Sold    2,666.00    Inventory    2,666.00 (To record the Cost of Goods Sold) 9-Sep Inventory    9,000.00    Accounts Payable - Tex Wholesalers    9,000.00 (To record the inventory purchased) 10-Sep Accounts Payable - Sheldon Wholesalers    6,100.00    Cash ($6,100 X 98%)    5,978.00    Inventory ($6,100 X 2%)       122.00 (To record the cash paid) 12-Sep Cash ($6,200 X 98%)    6,076.00 Sales Discount ($6,200 X 2%)       124.00    Accounts Receivable - Herman Co.    6,200.00 (To record the cash received) 13-Sep Accounts Payable - Tex Wholesalers       300.00    Inventory       300.00 (To record the allowance received) 15-Sep Accounts Receivable - Jesper Co.    2,900.00    Sales    2,900.00 (To record the sales) Cost of Goods Sold    1,160.00    Inventory    1,160.00 (To record the Cost of Goods Sold) 22-Sep Accounts Payable - Tex Wholesalers    8,700.00    Cash ($8,700 X 98%)    8,526.00    Inventory ($8,700 X 2%)       174.00 (To record the cash paid) 23-Sep Sales Return & Allowance       400.00    Accounts Receivable - Jesper Co.       400.00 (To record the sales return) Inventory       160.00    Cost of Goods Sold       160.00 (To record the cost of goods sold - sales return) 25-Sep Accounts Receivable - Smithsons    1,600.00    Sales    1,600.00 (To record the sales) Cost of Goods Sold       608.00    Inventory       608.00 (To record the Cost of Goods Sold)

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