Question

3 Purchased merchandise inventory on account from Shue ​Wholesalers, $ 5200. Terms 3​/15, ​n/EOM, FOB shipping point.

4 Paid freight bill of $ 75 on September 3 purchase.

4 Purchase merchandise inventory for cash of $ 1 comma 700.

6 Returned $ 700 of inventory from September 3 purchase.

8 Sold merchandise inventory to Hayes ​Company, $ 6300​, on account. Terms 3​/15, ​n/35. Cost of​ goods, $ 2772.

9 Purchased merchandise inventory on account from Tamara ​Wholesalers, $ 6500. Terms 3​/10, ​n/30, FOB destination.

10 Made payment to Shue Wholesalers for goods purchased on September ​3, less return and discount.

12 Received payment from Hayes ​Company, less discount.

13 After​ negotiations, received a $ 300 allowance from Tamara Wholesalers.

15 Sold merchandise inventory to Jex ​Company, $ 2600​, on account. Terms​ n/EOM. Cost of​ goods, $ 1092. 22 Made​ payment, less​ allowance, to Tamara Wholesalers for goods purchased on September 9.

23 Jex Company returned $ 800 of the merchandise sold on September 15. Cost of​ goods, $ 336. 25 Sold merchandise inventory to Sciavone for $ 2 comma 000 on account that cost $ 840. Terms of 1​/10, ​n/30 was​ offered, FOB shipping point. As a courtesy to Sciavone​, $ 65 of freight was added to the invoice for which cash was paid by Water Works.

29 Received payment from Sciavone​, less discount.

30 Received payment from Jex ​Company, less return.

Journalize the following transactions that occurred in

SeptemberSeptember

20182018

for

Water WorksWater Works​,

assuming the perpetual inventory system is being used. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name.

Water WorksWater Works

estimates sales returns at the end of each month. ​(Record debits​ first, then credits. Exclude explanations from journal entries. Assume the company records sales at the net​ amount.)

Answer 1

Date	Account Titles	Debit	Credit
Sep-03	Inventory	$            5,200
	Accounts Payable-Shue Wholesalers		$               5,200
Sep-04	Inventory	$                 75
	Cash		$                    75
Sep-04	Inventory	$            1,700
	Cash		$               1,700
Sep-06	Accounts Payable-Shue Wholesalers	$               700
	Inventory		$                  700
Sep-08	Accounts Receivable-Hayes Company	$            6,111
	Sales Revenue		$               6,111
	Cost of Goods Sold	$            2,772
	Inventory		$               2,772
Sep-09	Inventory	$            6,500
	Accounts Payable-Tamara Wholesalers		$               6,500
Sep-10	Accounts Payable-Shue Wholesalers	$            4,500
	Inventory		$                  135
	Cash		$               4,365
Sep-12	Cash	$            6,111
	Accounts Receivable-Hayes Company		$               6,111
Sep-13	Accounts Payable-Tamara Wholesalers	$               300
	Inventory		$                  300
Sep-15	Accounts Receivable-Jex Company	$            2,600
	Sales Revenue		$               2,600
	Cost of Goods Sold	$            1,092
	Inventory		$               1,092
Sep-22	Accounts Payable-Tamara Wholesalers	$            6,200
	Cash		$               6,200
Sep-23	Sales Returns and allowance	$               800
	Accounts Receivable-Jex Company		$                  800
	Inventory	$               336
	Cost of Goods Sold		$                  336
Sep-25	Accounts Receivable-Sciavone	$            2,045
	Sales Revenue		$               1,980
	Cash		$                    65
	Cost of Goods Sold	$               840
	Inventory		$                  840
Sep-29	Cash	$            2,045
	Accounts Receivable-Sciavone		$               2,045
Sep-30	Cash	$            1,800
	Accounts Receivable-Jex Company		$               1,800