Question

Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System The following selected transactions were completed during April between Swan Company and Bird Company:

Apr.2. Swan Company sold merchandise on account to Bird Company, $18,600, terms FOB shipping point, 1/10, n/30. Swan Company paid freight of $480, which was added to the invoice. The cost of the merchandise sold was $11,700.

8. Swan Company sold merchandise on account to Bird Company, $31,000, terms FOB destination, 2/15, n/30. The cost of the merchandise sold was $18,600.

8. Swan Company paid freight of $840 for delivery of merchandise sold to Bird Company on April 8.

12. Bird Company paid Swan Company for purchase of April 2.

18. Swan Company paid Bird Company a refund of $2,000 for defective merchandise in the April 2 purchase. Bird Company agreed to keep the merchandise.

23. Bird Company paid Swan Company for purchase of April 8.

24. Swan Company sold merchandise on account to Bird Company, $14,200, terms FOB shipping point, n/45. The cost of the merchandise sold was $8,500.

26. Bird Company paid freight of $320 on April 24 purchase from Swan Company.

30. Swan Company granted a customer allowance (credit memo) to Bird Company for $11,300 for merchandise that was returned from the August 24 purchase. The cost of the merchandise returned was $6,500.

Required: Journalize the April transactions for Bird Company (the buyer).

Answer 1

	In Books of Buyer - Bird Company
Date	Transactions		Debit	Credit
2-Apr	Inventory		$18,600
	To Accounts Payable - Swan Company			$18,600
8-Apr	Inventory		$31,000
	To Accounts Payable - Swan Company			$31,000
12-Apr	Accounts Payable - Swan Company		$18,600
	To Cash			$18,414
	To Inventory			186
18-Apr	Cash		$2,000
	To Inventory			$2,000
23-Apr	Accounts Payable - Swan Company		31000
	To Cash			30380
	To Inventory			620
24-Apr	Inventory		$14,200
	To Accounts Payable - Swan Company			$14,200
26-Apr	Inventory		$320
	To Cash			$320
30-Apr	Accounts Payable - Swan Company		$11,300
	To Inventory			$11,300