1. (July 1) Purchased merchandise from Boden Company for $6,600 under credit ter
ID: 2600963 • Letter: 1
Question
1. (July 1) Purchased merchandise from Boden Company for $6,600 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. 2. (July 2) Sold merchandise to Creek Co. for $950 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2 3. (July 2) Record the cost of merchandise sold $550 4. (July 3) Paid $115 cash for freight charges on the purchase of July 1 5. (July 8) Record sale of merchandise for $2,300 cash. 6. (July 8) Record cost of merchandise sold, $1,900. 7. (July 9) Purchased merchandise from Leight Co. for $2,500 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9 8. (July 1) Received a $500 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9 9. (July 12) Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. 10. (July 16) Paid the balance due to Boden Company within the discount period. 11. (July 19) Sold merchandise to Art Co. for $1,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. 12. (July 19) Record cost of merchandise sold, $1,200. 13. (July 21) Issued a $300 credit memorandum to Art Co. for an allowance on goods sold on July 19 14. (July 24) Paid Leight Co. the balance due, net of discount 15. (July 30) Received the balance due from Art Co. for the invoice dated July 19, net of discount. 16. (July 31) Sold merchandise to Creek Co. for $7,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. 17. (July 31) Record cost of merchandise sold, $5,400.Explanation / Answer
Date Account Debit credit July 1 merchandise inventory 6600 Accounts payable -Boden 6600 [inventory purchased on account] july 2 Accounts receivable-creek 950 sales revenue 950 [sales -made] cost of goods sold 550 merchandise inventory 550 [cost of sales recorded] july3 Merchandise inventory 115 cash 115 [freight paid] july8 cash 2300 sales revenue 2300 cost of goods sold 1900 merchandise inventory 1900 july9 merchandise inventory 2500 accounts payable -leight 2500 [inventory purchased on account] july11 accounts payable -leight 500 merchandise inventory 500 [inventory returned] july 12 cash 931 sales discount [950*.02] 19 Accounts receivable-creek 950 [amount due received] july16 Accounts payable-Boden 6600 merchandise inventory [6600*.02] 132 cash 6468 july 19 Accounts receivable -art co 1800 sales revenue 1800 cost of goods sold 1200 merchandise inventory 1200 july 21 Sales return and allowance 300 accounts receivable -art 300 july 24 Accounts payable-leight [2500-500return] 2000 merchandise inventory [2000*.02] 40 cash 1960 july30 cash 1470 sales discount [1500*.02] 30 accounts receivable -art co [1800-300] 1500 july31 accounts receivable-creek 7000 sales revenue 7000 cost of goods sold 5400 merchandise inventory 5400
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