For all problems assume the perpetual iventory gystem is used, othervwie Round a

Question

For all problems assume the perpetual iventory gystem is used, othervwie Round ail umbers to the nearest whole dollar unless sils b. Gross profit. r unless stated otherwis > Problems Group A Journalizing purchase and sale transactions Journalize the No explanations are needed. Identify each accounts payal with the vendor or customer name. Aquamarines estimates sales returns 2018 for Aquamarj r Aquamarin d accounts receivable sales returns at the end of ble and following transactions that occurred in Septem Purchased merchandise inventory on account from Sharpner Who $5,500. Terms 2/15, n/EOM, FOB shipping point. each month Sep. 3 4 Paid freight bill of $85 on September 3 purchase. Purchased merchandise inventory for cash of $1,600. 6 Returned $1,300 of inventory from September 3 purchase 8 Sold merchandise inventory to Herman Company, $5,700, on acc Terms 2/15, n/35. Cost of goods, $2,565. 9 Purchased merchandise inventory on account from Tucker Wh olesalers $6,000. Terms 3/10, n/30, FOB destination. 10 Made payment to Sharpner Wholesalers for goods purchased on September 3, less return and discount. 12 Received payment from Herman Company, less discount. 13 After negotiations, received a $500 allowance from Tucker Wholesalers 15 Sold merchandise inventory to Jerome Company, $2,800, on account. Terms n/EOM. Cost of goods, $1,200. 22 Made payment, less allowance, to Tucker Wholesalers for goods purchased on September 9 Jerome Company returned $200 of the merchandise sold on September 15. Cost of goods, $80. Sold merchandise inventory to Small for $1,800 on account that cost $738. Terms of 3/10, n/30 was offered, FOB shipping point. As a courtesy to Small, $40 of freight was added to the invoice for which cash was paid by Aquamarines 23 25 29 30 Received payment from Small, less discount. Received payment from Jerome Company, less return.

Explanation / Answer

Date Particulars Debit($) Credit($) Workings 3-Sep Purchases a/c Dr 5500         To Sharpner Wholesalers a/c 5500 4-Sep Freight Exp. a/c Dr 85       To Bank a/c 85 4-Sep Purchases a/c Dr 1600      To cash a/c 1600 6-Sep Sharpner Wholesalers a/c Dr 1300           To Purchases a/c 1300 8-Sep Herman Company a/c Dr 5700         To Sales a/c 5700 9-Sep Purchases a/c Dr 6000         To Tucker Wholesalers a/c 6000 10-Sep Sharpner Wholesalers a/c Dr 4200         To Bank a/c 4116 (5500-1300-84)         To Discount Received a/c 84 (4200*2%) 12-Sep Bank a/c Dr 5586 (5700-114) Discount Allowed a/c Dr 114 (5700*2%)            To Herman Company a/c 5700 13-Sep Tucker Wholesaler a/c Dr 500             To Discount Received a/c 500 15-Sep Jerome Company a/c Dr 2800           To Sales a/c 2800 22-Sep Tucker Wholesaler a/c Dr 5500         To Bank a/c 5500 (6000-500) 23-Sep Sales a/c Dr 200         To Jerome Company a/c 200 25-Sep Small a/c Dr 1800      To Sales a/c 1800 29-Sep Bank a/c Dr 1746 (1800-54) Discount Allowed a/c Dr 54 (1800*3%)         To Small a/c 1800 30-Sep Bank a/c Dr 2600 (2800-200)         To Jerome Company a/c 2600

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