Question

Record the following transactions into Weber Inc.'s journal. Assume a perpetual inventory system. Enter the transaction letter as the description when preparing a journal entry. When a transaction requires two separate journal entries, use the same letter for both descriptions. Dates must be entered in the format dd/mmm (ie, 15/Jan). (a) April 1: Weber Inc.'s merchandise was sold to Zcom Inc. for $9,400 under credit terms of 2/10, n/60, FOB destination. The cost of the merchandise was $7,520. (b) April 2: Paid $500 for freight charges on the sale of April 1. (c) April 3: Weber Inc. purchased merchandise for cash from Allarco Inc., $9,800, FOB destination. (d) April 3: Weber Inc. purchased merchandise from X-cell Inc. for $5,200 under credit terms of 2/10, n/60, FOB destination. (e) April 4: Weber Inc. purchased merchandise on credit from Stake Technology Inc., terms 2/10, n/60, $5,200, FOB destination. (f) April 6: Weber Inc.'s merchandise that cost $6,960 was sold to Courtland Corp. for $8,700 under credit terms of n/30, FOB shipping point. (g) April 7: Zcom Inc. requested a price reduction on the April 1 sale because the merchandise did not meet specifications. Sent Zcom Inc. a credit memorandum for $500 to resolve the issue. (h) April 7: Received a credit memorandum in the amount of $2,300 acknowledging the return of merchandise purchased from Stake Technology Inc. on April 4. (i) April 16: Paid the balance due to Stake Technology Inc. (j) May 6: Received Courtland Corp.'s payment of the amount due from the April 6 sale. (k) May 31: Received the balance due from Zcom Inc. for the sale dated April 1. (l) May 31: Paid X-cell Inc. the balance due.

Answer 1

In the books of Weber Inc. :

Transaction / Event	Date	Account Titles	Debit	Credit
			$	$
a.	01/ Apr	Accounts Receivable : Zcom Inc.	9,400
		Sales Revenue		9,400
a.	01/ Apr	Cost of Goods Sold	7,520
		Merchandise Inventory		7,520
b.	02/Apr	Freight-out	500
		Cash		500
c.	03/Apr	Merchandise Inventory	9,800
		Cash		9,800
d.	03 / Apr	Merchandise Inventory	5,200
		Accounts Payable: Xcell Inc.		5,200
e.	04 / Apr	Merchandise Inventory	5,200
		Accounts Payable : Stake Technology Inc.		5,200
f.	06 / Apr	Accounts Receivable: Courtland Corp.	8,700
		Sales Revenue		8,700
f.	06 / Apr	Cost of Goods Sold	6,960
		Merchandise Inventory		6,960
g.	07 / Apr	Sales Returns and Allowances	500
		Accounts Receivable: Zcom. Inc.		500
h.	07/ Apr	Accounts Payable: Stake Technology Inc.	2,300
		Merchandise Inventory		2,300
i.	16 / Apr	Accounts Payable: Stake Technogy Inc.	2,900
		Cash		2,900
j.	06 / May	Cash	8,700
		Accounts Receivable: Courtland Corp.		8,700
k.	31 / May	Cash	8,900
		Accounts Receivable: Zcom Inc.		8,900
l.	31 / May	Accounts Payable: Xcell Inc.	5,200
		Cash		5,200