The Williams Company sells a product called Mix-Right for $15 each and uses a pe

Question

The Williams Company sells a product called Mix-Right for $15 each and uses a perpetual inventory system to account for its merchandise. The beginning balance of Mix-Rights and transactions during October 2017 were as follows:

Returned 29 of the units purchased on October 3.

Sold 168 units to Thorhild Co-op, invoice #211.

Paid for the October 3 purchase; cheque #101.

Required:
Journalize the October transactions in the sales, purchases, and cash disbursements journals. Assume all sales and purchases are on credit; terms 2/10, n/30. Under the assumption that the company keeps its records on a weighted average basis, enter the beginning balances and post each transaction on an inventory subledger record. Posting to other subledgers is not required. (Enter the transactions in the order provided in the question. If no entry is required for a transaction/event, select "No journal entry required" in the first account field of the journal entry worksheet. Round final answers to 2 decimal places.)

Oct 1 Balance: 94 units costing $5 each. 3 Purchased 109 units from Arnold Brothers costing $7.50 each 4

Returned 29 of the units purchased on October 3.

9 Sold 84 units to Kitchen Club, invoice #210. 15 Purchased 209 units from Arnold Brothers costing $8.20 each. 18

Sold 168 units to Thorhild Co-op, invoice #211.

19

Paid for the October 3 purchase; cheque #101.

23 Paid for the October 15 purchase, cheque #102. 24 Sold 59 units to Boyle Grocery, invoice #212. 31 Purchased 84 units from Arnold Brothers costing $8.00 each. WILLIAMS COMPANY Sales Journa COGS Dr. A/R Dr. Merchandise Sales Cr.Inventory C Date (2017) Account Debited Invoice A Inventory Cr.

Explanation / Answer

journal

Date

Particulars

Debit

Credit

Oct 3

Purchase     a/c     Dr

817.5

          To    Arnold brothers     a/c

817.5

(being goods purchased on credit109 units@7.5)

Oct 4

Arnold brothers a/c        Dr

217.5

         To   Purchase      a/c

217.5

(being goods returned of 29 units)

Oct 9

Kitchen club    a/c     Dr

1260

         To    sales      a/c

1260

(being goods sold to kitchen club @15 /unit)

Oct 15

Purchase     a/c     Dr

1714

          To    Arnold brothers     a/c

1714

(being goods purchased on credit209 units@8.2)

Oct 18

Thorhild   co op a/c    Dr

2520

           To    sales        a/c

2520

(being 168 units sold @15/unit)

Oct 19

Arnold brothers      A/c     Dr   

500

            To     cash     a/c

500

Oct 23

Arnold brothers      A/c     Dr   

1714

            To     cash     a/c

34

             To    Discount received   a/c

1680

(bing payment made to Arnold brothers for purchase made on 15th October after discount 1722*2%=34)

Oct 24

Boyle grocery     a/c      Dr

885

         To sales   a/c

885

(being goods sold @ 15 /unit)

Oct 31

Purchase     a/c     Dr

672

          To    Arnold brothers     a/c

672

(being goods purchased on credit84 units@8)

TOTAL

10300

10300

SPECIFIC IDENTIFICATION METHOD

DATE

PURCHASE

SALES

CLOSING INVENTORY

UNIT

PRICE

GROSS

UNIT

PRICE

GROSS

UNIT

PRICE(avg)

GROSS

Opening balance

94

5

470

Oct 3

109

7.5

817.5

203

6.35

1289

return

(29)

(7.5)

(217.5)

174

6.15

1070

Oct 9

84

15

1260

90

6.15

554

Oct 15

209

8.20

1714

299

7.6

2272

Oct 18

168

15

2520

131

7.6

996

Oct 23 discount

(34)

Oct 24

59

15

885

72

7.34

528

Oct 31

84

8

672

156

7.7

1200

journal

Date

Particulars

Debit

Credit

Oct 3

Purchase     a/c     Dr

817.5

          To    Arnold brothers     a/c

817.5

(being goods purchased on credit109 units@7.5)

Oct 4

Arnold brothers a/c        Dr

217.5

         To   Purchase      a/c

217.5

(being goods returned of 29 units)

Oct 9

Kitchen club    a/c     Dr

1260

         To    sales      a/c

1260

(being goods sold to kitchen club @15 /unit)

Oct 15

Purchase     a/c     Dr

1714

          To    Arnold brothers     a/c

1714

(being goods purchased on credit209 units@8.2)

Oct 18

Thorhild   co op a/c    Dr

2520

           To    sales        a/c

2520

(being 168 units sold @15/unit)

Oct 19

Arnold brothers      A/c     Dr   

500

            To     cash     a/c

500

Oct 23

Arnold brothers      A/c     Dr   

1714

            To     cash     a/c

34

             To    Discount received   a/c

1680

(bing payment made to Arnold brothers for purchase made on 15th October after discount 1722*2%=34)

Oct 24

Boyle grocery     a/c      Dr

885

         To sales   a/c

885

(being goods sold @ 15 /unit)

Oct 31

Purchase     a/c     Dr

672

          To    Arnold brothers     a/c

672

(being goods purchased on credit84 units@8)

TOTAL

10300

10300

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