Purchase-Related Transactions Using Perpetual Inventory System The following sel

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

Oct. 1 Merchandise Inventory $13,891 Accounts Payable-UK Imports Co. $13,891 Oct. 3 Merchandise Inventory $9,800 Accounts Payable-Hoagie Co. $9,800 Oct. 4 Merchandise Inventory $12,350 Accounts Payable- Taco Co. $12,350 Oct. 6 Accounts Payable- Taco Co. $4,950 Merchandise Inventory $4,950 Oct. 13 Accounts Payable-Hoagie Co. 9800 Merchandise Inventory 192 Cash 9608 Oct. 14 Accounts Payable- Taco Co. 7400 Merchandise Inventory 148 Cash 7252 Oct. 19 Merchandise Inventory $29,480 Accounts Payable- Veggie Co. $29,480 Oct. 19 Merchandise Inventory 425 Cash 425 Oct. 20 Merchandise Inventory $21,200 Accounts Payable-Caesar Salad Co. $21,200 Oct. 30 Accounts Payable-Caesar Salad Co. $21,200 Merchandise Inventory 212 Cash 20988 Oct. 31 Accounts Payable-UK Imports Co $13,891 Cash $13,891 Oct. 31 Accounts Payable-Veggie Co $29,480 Cash $29,480

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