Question

On May 11, 2020, Wilson Purchasing purchased $29,500 of merchandise from Happy Sales; terms 3/10, n/90,...

On May 11, 2020, Wilson Purchasing purchased $29,500 of merchandise from Happy Sales; terms 3/10, n/90, FOB Happy Sales. The cost of the goods to Happy was $24,500. Wilson paid $1,950 to Express Shipping Service for the delivery charges on the merchandise on May 11. On May 12, Wilson returned $4,900 of goods to Happy Sales, which restored them to inventory. The returned goods had cost Happy $4,100. On May 20, Wilson mailed a cheque to Happy for the amount owed on that date. Happy received and recorded the cheque on May 21.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

In the books of Wilson:

Date Account title and explanation Debit Credit
1 May 11 Merchandise inventory $29,500
Accounts payable $29,500
[To record purchase of merchandise on account]
2 May 11 Merchandise inventory $1,950
Cash $1,950
[To record payment of delivery expense]
3 May 12 Accounts payable $4,900
Merchandise inventory $4,900
[To record purchase returns]
4 May 20 Accounts payable [29500-4900 returns] $24,600
Cash $24,108
Merchandise inventory [24600 x 2%] $492
[To record cash paid to suppliers]
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On May 11, Sydney Co. accepts delivery of $28,000 of merchandise it purchases for resale from...
On May 11, Sydney Co. accepts delivery of $28,000 of merchandise it purchases for resale from Troy Corporation. With the merchandise is an invoice dated May 11, with terms of 3/10, n/90, FOB shipping point. The goods cost Troy $18,760. When the goods are delivered, Sydney pays $305 to Express Shipping for delivery charges on the merchandise. On May 12, Sydney returns $1,220 of goods to Troy, who receives them one day later and restores them to inventory. The returned...
Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions.    May 11 Sydney...
Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions.    May 11 Sydney accepts delivery of $33,500 of merchandise it purchases for resale from Troy: invoice dated May 11; terms 3/10, n/90; FOB shipping point. The goods cost Troy $22,445. Sydney pays $335 cash to Express Shipping for delivery charges on the merchandise. 12 Sydney returns $1,400 of the $33,500 of goods to Troy, who receives them the same day and restores them to its inventory. The...
Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions.    May 11 Sydney...
Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions.    May 11 Sydney accepts delivery of $25,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $16,750. Sydney pays $535 cash to Express Shipping for delivery charges on the merchandise. 12 Sydney returns $1,300 of the $25,000 of goods to Troy, who receives them the same day and restores them to its inventory. The...
Nov. ​2: Purchased $ 3 comma 200 of merchandise inventory on account under terms 1​/10, ​n/EOM...
Nov. ​2: Purchased $ 3 comma 200 of merchandise inventory on account under terms 1​/10, ​n/EOM and FOB shipping point. Date Accounts Debit Credit Nov. 2 Purchases 3,200 Accounts Payable 3,200 Nov. ​6: Returned $ 600 of defective merchandise purchased on November 2. Date Accounts Debit Credit Nov. 6 Accounts Payable 600 Purchase Returns and Allowances 600 Nov. ​8: Paid freight bill of $ 130 on November 2 purchase. Date Accounts Debit Credit Nov. 8 Freight In 130 Cash 130...
Required information Skip to question [The following information applies to the questions displayed below.]    Sydney...
Required information Skip to question [The following information applies to the questions displayed below.]    Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of $50,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $31,000. Sydney pays $300 cash to Express Shipping for delivery charges on the merchandise. May 12 Sydney returns $1,000 of the $50,000 of goods...
3 Purchased merchandise inventory on account from Shue ​Wholesalers, $ 5200. Terms 3​/15, ​n/EOM, FOB shipping...
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...
Apr. 5 Sheridan Company purchased merchandise from DeVito Company for $12,100, terms 2/10, n/30, FOB shipping...
Apr. 5 Sheridan Company purchased merchandise from DeVito Company for $12,100, terms 2/10, n/30, FOB shipping point. DeVito had paid $8,800 for the merchandise.6 The correct company paid freight costs of $330. 8 Sheridan Company returned damaged merchandise to DeVito Company and was given a purchase allowance of $1,800. DeVito determined the merchandise could not be repaired and sent it to the recyclers. The merchandise had cost DeVito $1,309. May 4 Sheridan paid the amount due to DeVito Company in...
1. Gore Inc. sold $7,200 of merchandise on account, terms 2/10,n/30. If the customer paid the...
1. Gore Inc. sold $7,200 of merchandise on account, terms 2/10,n/30. If the customer paid the amount owed within the discount period, the entry to record the receipt of cash would include a: debit to cash of $7,200 debit to sales discount of $144 credit to accounts receivable of $144 credit to accounts payable of $7,056       2.   Cost of goods sold:             A) Is another term for sales.             B)   Is the term used for the cost of buying...
On June 10, Sheridan Company purchased $7,700 of merchandise from Crane Company, terms 3/10, n/30. Sheridan...
On June 10, Sheridan Company purchased $7,700 of merchandise from Crane Company, terms 3/10, n/30. Sheridan Company pays the freight costs of $430 on June 11. Goods totaling $800 are returned to Crane Company for credit on June 12. On June 19, Sheridan Company pays Crane Company in full, less the purchase discount. Both companies use a perpetual inventory system. Prepare separate entries for each transaction for Crane Company. The merchandise purchased by Sheridan Company on June 10 cost Crane...
Purchase- Related Transaction The Stationery Company purchased merchandise on account from a supplier for $17,000 terms...
Purchase- Related Transaction The Stationery Company purchased merchandise on account from a supplier for $17,000 terms 2/10 n/30. The Stationery Company returned merchandise with invoice amount of $2, 200 and received full credit. a) If The Stationery Company pays invoice within the discount period, what is the amount of cash required for the payment? $____________. Determining Amounts to be Paid on Invoices Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT