journalize transactions May 20 Sold merchandise on account to Crescent Co., term
ID: 342336 • Letter: J
Question
journalize transactions
May 20 Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,000. The cost of the merchandise sold was $70,000. 21 For the convenience of Crescent Co., paid freight on sale of May 20, $2,300. 21 Received $42,900 cash from Gee Co. on account. 21 Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000. 24 Returned of damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. 26 Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800. 28 Paid sales salaries of $56,000 and office salaries of $29,000. 29 Purchased store supplies for cash, $2,400. 30 Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the merchandise sold was $47,000. 30 Received cash from sale of May 20 plus freight paid on May 21. 31 Paid for purchase of May 21, less return of May 24.Explanation / Answer
Journal entries of the transactions Date Perticulares Amount Dr Amont Cr 20-May Crescent A/C $70,000 To Sale ( marchandise) $70,000 (Being marchandise sold to crescent co. in term of 1/10,n/30 at FOB 110000 was Sold $70000) 21-May Freight A/C dr $2,300 To Cash & Bank a/c $2,300 ( Being Frieght paid on sale of marchandise) 21-May Cash A/c dr $42,900 To Gee Co. $42,900 ( Being cash received from Gee Co. on accounts ) 21-May Purchase( Marchandise ) A/c Dr $88,000 To Osterman Co. $88,000 ( Being Marchandise purchase from osterman co in term of 1/10,n/30) 24-May Osterman A/c dr $5,000 To Purchase ( Marchandise) A/c $5,000 (Being Credit memo received from seller for return of damaged marchandise) 26-May Sale Return A/c Dr $7,500 To Cash a/c $7,500 ( Being Cash refunded on sale made for cash) Marchandise A/c Dr. $4,800 To Cost of Good sold A/c $4,800 ( Being Inventory cost return by seller) 28-May Sales Salaries A/c Dr. $56,000 Office Salaries A/c Dr $29,000 To Cash/Bank A/c $85,000 ( Being Salary paid ) 29-May Store Supplies A/c Dr $2,400 To Cash a/c $2,400 ( eing Store supplies purchase) 30-May Turner Co A/c $47,000 To Sale Marchandise $47,000 ( Being Marchandise sold to Turner & Co in term on 2/10 , n/30) 30-May Cash a/c dr $69,300 Frieght A/c Dr $2,300 Discount allowed $700 To Crescent A/c $72,300 ( Being Cash Received from Crescent Co with in 10 days and reimbursement of Frieght) 31-May Osterman A/c Dr $88,000 To Cash A/c $87,120 To Discount Received $880 ( Being Cash paid osterman co. with in 10 days )
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