Question value 10.00 points Aug 1 Purchased merchandise from Abilene Company for

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Question value 10.00 points Aug 1 Purchased merchandise from Abilene Company for $9,700 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1 amount owed to Abilene dated August 5. The merchandise had cost $4,848 l Ai e pi c r eight charges on the uat 1 purchase redacing tho 5 Sold merchandise to Lux Corp for $6,790 under credit terms of 2/10, n/60, FOB destination, invoice sed merchandise from Welch Corporation for $9,000 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8 The invoice showed that at Stone's request, Welch paid the $240 shipping charges and added shipping charges.) Paid $200 cash for shipping charges related to the August 5 sale to Lux Corp that amount to the bill (Hint: Discounts are not applied to freight and 9 0 Lux returned merchandise from the August 5 sale that had cost Stone $808 and been sold for $1,132. 12 After negotiations 15 Received balance due from Lux Corp for the August 5 sale less the return on August 10 The merchandise was restored to inventory with Welch Corporation concerning problems with the merchandise purchased on e received a credit memorandum from Welch granting a price reduction of $1,359 aid the amount due to Welch Corporation for the August 8 purchase less the price reduction granted 19 Sold merchandise to Trax Co for $5,820 under credit terms of 1/10, n/30, FOB shipping point, invoice 18 P dated August 19. The merchandise had cost $4,039 22 Trax requested a price reduction on the August 19 sale because the merchandise dis not meet specifications. Stone sent Trax a $970 credit memorandum to resolve the issue 29 Received Trax's cash payment for the amount due from the August 19 sale 30 Paid Abilene Company the amount due from the August 1 purchase Prepare journal entries to record the above perpetual inventory system. (Identify each receivable and merchandising transactions of Stone Company, which applies the for example, record the purchase on August 1 in Round your answer to nearest dollar amount. Omit the "$" sign in your General Journal Debit Aug. 1 Merchandise inventory 9700 Accounts payable-Abilene 9700 4 Accounts payable-Abilene 260 Cash 260 5 Accounts receivable-Lux 6790 Sales 6790 Cost of goods sold 4848 Merchandise inventory 848 8 Merchandise inventory 9000 Accounts payable-Welch 9000 240 Cash 240 10 Sales returns and allowances 1132

Explanation / Answer

Date General Journal Debit Credit 1-Aug Merchandise inventory 9,700 Accounts payable - Abilene 9,700 4-Aug Accounts payable -Abilene 260 cash 260 5-Aug Accounts receivable -lux corp 6,790 sales 6,790 cost of goods sold 4,848 Merchandise inventory 4,848 8-Aug Merchandise inventory 9,240 Accounts payable -Welch (9000+240) 9,240 9-Aug Delivery expense 200 cash 200 10-Aug Sales return-luc corp 1,132 account receivable 1,132 merchandise inventory 808 cost of goods sold 808 12-Aug Accounts payable -Welch 1,359 Merchandise inventory 1,359 15-Aug Cash (5658*98%) 5545 Sales Discount (5658*2%) 113 Account receivable -lux (6,790-1132) 5658 18-Aug Accounts payable-Welch(9240-1359) 7881 merchandise inventory (9000-1359)*1% 76 Cash (9000-1359-76+240) 7805 19-Aug Accounts recievable-Trax co 5,820 Sales 5,820 cost of goods sold 4,039 merchandise inventory 4,039 22-Aug Sales return & allowance 970 Accounts receivable-Trax co 970 29-Aug Cash 5762 sales discount & allowance (5820*1%) 58 Accounts receivable -Trax Co 5,820 30-Aug Accounts payable -Abilene 9440 cash (9700-260) 9,440

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