ons The following selected transactions were completed by Capers Company during
ID: 2563962 • Letter: O
Question
ons The following selected transactions were completed by Capers Company during October of the current year: Oct.1 Purchased merchandise from UK Imports Co., $13,031, terms FOB destination, n/30. 3 Purchased merchandise from Hoagle Co, $9,150, terms FOB shipping point, 2/10, n/eom Prepaid freight of $205 was added to the invoice. 4 Purchased merchandise from Taco Co, $14.800, terms FOB destination, 2/10, /30. 6 Issued debit memo to Taco Co. for $4,600 of merchandise returned from purchase on October 4. 13 Paid Hoagie Co. for involce of October 3. 14 Paid Taco Co. for invoice of October 4, less debit memo of October 6. 19 Purchased merchandise from Veggie Co, $26,320, terms FOB shipping point, n/eom. 19 Paid freight of $410 on October 19 purchase from Veggie Co. 20 Purchased merchandise from Caesar Salad Co, $20,100, terms FOB destination, 1/10, 30 31 31 n/30. Paid Caesar Salad Co. for invoice of October 20. Paid UK Imports Co. for invoice of October 1. Paid Veggie Co. for invoice of October 19.Explanation / Answer
Answer:
Date
Description
Debit $
Credit $
1-Oct
Merchandise inventory
13031
accounts payable-UK Import
13031
(to record the purchase of merchandise on account)
3-Oct
Merchandise inventory
9150
accounts payable-Hoagie co
9150
(to record the purchase of merchandise on account)
4-Oct
Merchandise inventory
14800
accounts payable -Taco CO
14800
(to record the purchase of merchandise on account)
6-Oct
accounts payable-Taco
4600
To Merchandise inventory
4600
(to record the return of inventory)
13-Oct
accounts payable-Hoagie co
9150
cash
8971.1
Purchase discount and allowance
178.9
(to record the payment to Hoagie company)
(see working note-1 for calculation)
14-Oct
accounts payable-Taco co
10200
cash
9996
Purchase discount and allowance
204
(to record the payment to Taco company)
(see working note-2 for calculation)
19-Oct
Merchandise inventory
26320
accounts payable-Veggie company
26320
(to record the purchase of merchandise on account)
19-Oct
Fright expanses
410
cash
410
(to record the freight exp)
20-Oct
Merchandise inventory
20100
accounts payable-Caesar salad company
20100
(to record the purchase of merchandise on account)
30-Oct
accounts payable-Caesar salad company
20100
cash (20100-402)
19698
Purchase discount and allowance (20100*2%)
402
(to record the payment to Caesar salad company)
31-Oct
accounts payable-UK Import
13031
cash
13031
31-Oct
accounts payable-Veggie company
26320
cash
26320
Working notes for the answer
WN-1
Invoice value
9150
Less: Prepaid fright
205
Purchase value
8945
Less: Discount at 2%
178.9
Net purchase value
8766.1
Add: Fright
205
Total cash payment
8971.1
.WN-2
Invoice value
14800
Less: Purchase return
4600
Purchase value
10200
Less:Disocount at 2%
204
Total cash payment
9996
Date
Description
Debit $
Credit $
1-Oct
Merchandise inventory
13031
accounts payable-UK Import
13031
(to record the purchase of merchandise on account)
3-Oct
Merchandise inventory
9150
accounts payable-Hoagie co
9150
(to record the purchase of merchandise on account)
4-Oct
Merchandise inventory
14800
accounts payable -Taco CO
14800
(to record the purchase of merchandise on account)
6-Oct
accounts payable-Taco
4600
To Merchandise inventory
4600
(to record the return of inventory)
13-Oct
accounts payable-Hoagie co
9150
cash
8971.1
Purchase discount and allowance
178.9
(to record the payment to Hoagie company)
(see working note-1 for calculation)
14-Oct
accounts payable-Taco co
10200
cash
9996
Purchase discount and allowance
204
(to record the payment to Taco company)
(see working note-2 for calculation)
19-Oct
Merchandise inventory
26320
accounts payable-Veggie company
26320
(to record the purchase of merchandise on account)
19-Oct
Fright expanses
410
cash
410
(to record the freight exp)
20-Oct
Merchandise inventory
20100
accounts payable-Caesar salad company
20100
(to record the purchase of merchandise on account)
30-Oct
accounts payable-Caesar salad company
20100
cash (20100-402)
19698
Purchase discount and allowance (20100*2%)
402
(to record the payment to Caesar salad company)
31-Oct
accounts payable-UK Import
13031
cash
13031
31-Oct
accounts payable-Veggie company
26320
cash
26320
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