last name, First nameAheA Chp. 5 10mks Orbit Pro Barber & Co. Chad Funk Inc. Ker

Question

last name, First nameAheA Chp. 5 10mks Orbit Pro Barber & Co. Chad Funk Inc. Keratin Hair Styling Room Chad Funk is a hair stylist who opened a business selling hair products: He imports products from around the world and sells to salons in Canada. 1.) Record the Journal Entries for the month of October a) Oct. 1; Purchased $1,400 of hair spray from Orbit Pro; terms 3/10, n/30, FOB shipping point. The appropriate party paid the shipping cost of $200. b) Oct. 5: Sold shampoo costing $420 to Barber& Co. for a price of $600 with terms of 2/10, n/30, FOB shipping point. The appropriate party paid the shipping cost of S8o c) Oct. 7: Returned $500 of inventory to Orbit Pro due to an error in the Oct. 1 order d) Oct. 10: Paid Orbit Pro for the purchase on October 1. e) Oct. 14: Barber & Co. returned $100 of inventory from the sale on Oct. 5. The inventory had a cost of $70. f)Oct. 22: Received the payment from Barber &Co.; on the October 5 sale. g) Oct. 23: Purchased $2,000 of hair conditioner from Keratin Hair, terms 2/10, n/30, FOB shipping point. The appropriate party paid the shipping cost of $300. h) Oct. 25: Sold hair gel to Styling Room for an invoice price of $1,000, terms 2/10, n/30, FOB destination. The hair gel had a cost of $700. The appropriate party paid the shipping cost of $150. on October 23. 5) Oct 31: Received the payment from Styling Room on the October

Explanation / Answer

JOURNAL ENTRY Ref Date Account Title Debit Credit a) Oct. 1 Inventory $1,600 ( FOB shipping point. Chad Funk bears cost of shipping $200) Accounts payable $1,400 Cash $200 (Shipping cost) b) Oct.5 Accounts receivable $600 ( FOB shipping point. Barber & Co. bears cost of shipping $80) Sales $600 Cost of goods sold $420 Inventory $420 c) Oct.7 Accounts payable $500 Inventory $500 d) Oct.10 Accounts payable $900 (1400-500) Cash $873 (900-discount)=900-27 Purchase discounts $27 (3% of 900=0.03*900= 27 e) Oct.14 Sales returns and allowances $100 Accounts receivable $100 Cost of goods sold $70 Inventory $70 f) Oct.22 Cash $500 Full amount received without discount for payment after 17 days Accounts receivable $500 (600-100) g) Oct. 23 Inventory $2,300 ( FOB shipping point. Chad Funk bears cost of shipping $300) Accounts payable $2,000 Cash $300 (Shipping cost) h) Oct. 25 Accounts receivable $1,000 ( FOB destination. Chad funk bears cost of shipping $150) Sales $1,000 Cost of goods sold $700 Inventory $700 Shipping cost $150 Cash $150 i) Oct. 26 Accounts payable $2,000 Cash $1,960 (2000-40) Purchase discount $40 (Discount=2% of 2000=0.02*2000=$40) j) Oct.31 Cash $980 (1000-20) Sales discount $20 (2% of 1000=$20 Accounts receivable $1,000

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