Purchase-Related Transactions Using Perpetual Inventory System The following sel
ID: 2550551 • Letter: P
Question
Purchase-Related Transactions Using Perpetual Inventory System
The following selected transactions were completed by Capers Company during October of the current year:
Required:
Journalize the entries to record the transactions of Capers Company for October.
For a compound transaction, if an amount box does not require an entry, leave it blank.
Oct. 1. Purchased merchandise from UK Imports Co., $13,891, terms FOB destination, n/30. 3. Purchased merchandise from Hoagie Co., $9,600, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $200 was added to the invoice. 4. Purchased merchandise from Taco Co., $12,350, terms FOB destination, 2/10, n/30. 6. Issued debit memo to Taco Co. for $4,950 of merchandise returned from purchase on October 4. 13. Paid Hoagie Co. for invoice of October 3. 14. Paid Taco Co. for invoice of October 4, less debit memo of October 6 and discount. 19. Purchased merchandise from Veggie Co., $29,480, terms FOB shipping point, n/eom. 19. Paid freight of $425 on October 19 purchase from Veggie Co. 20. Purchased merchandise from Caesar Salad Co., $21,200, terms FOB destination, 1/10, n/30. 30. Paid Caesar Salad Co. for invoice of October 20. 31. Paid UK Imports Co. for invoice of October 1. 31. Paid Veggie Co. for invoice of October 19.Explanation / Answer
Capers Company Journal Entries Date Particulars Debit Credit 01-Oct Inventory $ 13,891 Accounts Payable UK-Imports Co. $ 13,891 03-Oct Inventory ( $ 9,600 + $ 200) $ 9,800 Accounts Payable Hoagie Co. $ 9,800 04-Oct Inventory $ 12,350 Accounts Payable Taco Co. $ 12,350 06-Oct Accounts Payable Taco Co. $ 4,950 Inventory $ 4,950 13-Oct Accounts Payable Hoagie Co. $ 9,800 Inventory ( 2 % of $ 9,600) $ 196 Cash ( $ 9,600 - ( 2 % of $ 9,600) + $ 200) $ 9,604 14-Oct Accounts Payable Taco Co. ( $ 12,350 - $ 4,950) $ 7,400 Inventory ( 2 % of $ 7,400) $ 148 Cash [$ 7,400 - ( 2 % of $ 7,400)] $ 7,252 19-Oct Inventory $ 29,480 Accounts Payable Veggie Co. $ 29,480 19-Oct Inventory $ 425 Cash $ 425 20-Oct Inventory $ 21,200 Accounts Payable Caesar Salad Co. $ 21,200 30-Oct Accounts Payable Caesar Salad Co. $ 21,200 Inventory ( $ 21,200 * 1%) $ 212 Cash [ $ 21,200 - ( $ 21,200 * 1%)] $ 20,988 31-Oct Accounts Payable UK-Imports Co. $ 13,891 Inventory $ 13,891 31-Oct Accounts Payable Veggie Co. $ 29,480 Cash $ 29,480
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