July 1 Purchased merchandise from Boden Company for $6,100 under credit terms of
ID: 2605409 • Letter: J
Question
July 1 Purchased merchandise from Boden Company for $6,100 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1 2 Sold merchandise to Creek Co. for $950 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost S508 3 Paid $130 cash for freight charges on the purchase of July 1 8 Sold merchandise that had cost $1,400 for $1,800 cash 9 Purchased merchandise from Leight Co. for $2,400 under credit terms of 2/15, n/60, FOB destination, 11 Received a $400 credit memorandum from Leight Co. for the return of part of the merchandise 12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. 16 Paid the balance due to Boden Company within the discount period. 19 Sold merchandise that cost S1,200 to Art Co. for $1,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19 21 Issued a $300 credit memorandum to Art Co. for an allowance on goods sold on July 19 24 Paid Leight Cothe balance due after deducting the discount. 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount 31 Sold merchandise that cost $4,900 to Creek Co. for $6,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31 Prepare journal entries to record the above merchandising transactions of Blink Company, which applies the perpetual inventory system.Explanation / Answer
In the books of Blink Company:
Date Account Titles Debit Credit $ $ July 1 Merchandise Inventory 6,100 Accounts Payable: Boden Company 6,100 July 2 Accounts Receivable : Creek Company 950 Sales 950 Cost of Goods Sold 508 Merchandise Inventory 508 July 3 Merchandise Inventory 130 Cash 130 July 8 Cash 1,800 Sales 1,800 Cost of Goods Sold 1,400 Merchandise Inventory 1,400 July 9 Merchandise Inventory 2,400 Accounts Payable : Leight Company 2,400 July 11 Accounts Payable : Leight Company 400 Merchandise Inventory 400 July 12 Cash 931 Sales Discounts 19 Accounts Receivable: Creek Co. 950 July 16 Accounts Payable: Boden Company 6,100 Cash 5,978 Merchandise Inventory 122 July 19 Accounts Receivable : Art Co. 1,800 Sales 1,800 Cost of Goods Sold 1,200 Merchandise Inventory 1,200 July 21 Sales Returns and Allowances 300 Accounts Receivable : Art Co. 300 July 24 Accounts Payable : Leight Company 2,000 Cash 1,960 Merchandise Inventory 40 July 30 Cash 1,470 Sales Discount 30 Accounts Receivable : Art Co. 1,500 July 31 Accounts Receivable : Creek Co. 6,800 Sales 6,800 Cost of Goods Sold 4,900 Merchandise Inventory 4,900Related Questions
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