Question
Question 5: Perpetual Inventory: Journal Entries (26 marks) The following are transactions for Chandler Fashions for...
Question 5: Perpetual Inventory: Journal Entries
The following are transactions for Chandler Fashions for the month of June.
June 2 Purchased 3,000 items of inventory under terms 1/10, n/60 and FOB shipping point from Flower Manufacturing. The merchandise had a cost of $12,000
June 7 Returned defective merchandise to Flower Manufacturing with invoice price of $4,000.
June 8 Paid the freight charges on the purchase from Flower Manufacturing in cash for $200.
June 9 Sold merchandise to Trendy Store on account for $10,000 with terms 2/15, n/60 FOB shipping point.
Cost of the merchandise sold was $6,000.
June 10 Paid Flower Manufacturing the balance on account.
June 12 Granted sales allowance of $1,000 to Trendy Store for defective merchandise.
June 23 Collected balance owing from Trendy Store.
June 27 Purchased 500 items of inventory, terms 1/15, n/30, FOB destination from Sparkle Co. The merchandise had a cost $2,000.
June 30 Paid for the merchandise from Sparkle Co.
Instructions
Using a perpetual inventory system, prepare the journal entries to record the transactions
OMIT Explanations.
|
Date |
General Journal |
Debit |
Credit |
|
June 2 |
Merchandise Inventory |
12000 |
|
|
Accounts payable- Flower Manufacturing |
12000 |
||
|
June 7 |
|||
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
Prepare the journal entries for each of the following: June 5 Purchased $12,000 of inventory on...
Prepare the journal entries for each of the
following:
June 5 Purchased $12,000 of inventory on
account with terms 2/10,n/30, FOB Shipping Point.
June 7 Returned $2,000 of defective
merchandise purchased on June 5.
June 8 Paid cash of $100 for the freight
bill for the June 5 purchase.
June 10 Sold inventory on account for $8,000, terms
3/15,n/eom. The inventory cost $5,200.
June 12 The customer from June 10 returned $400 of
merchandise. This merchandise cost the company $250....
Prepare journal entries to record the following merchandising transactions of Parker's, which uses the perpetual inventory...
Prepare journal entries to record the following merchandising
transactions of Parker's, which uses the perpetual inventory system
and the gross method. (Hint: It will help to identify each
receivable and payable; for example, record the purchase on July 1
in Accounts Payable—Allen.)
Jul.
1
Purchased merchandise from Allen Company for $10,600 under
credit terms of 1/15, n/30, FOB shipping point, invoice dated July
1.
Jul.
2
Sold merchandise to Garcia Co. for $3,200 under credit terms of
2/10, n/60, FOB...
Purchase-Related Transactions Using Perpetual Inventory System The following selected transactions were completed by Capers Company during...
Purchase-Related Transactions Using Perpetual Inventory
System
The following selected transactions were completed by Capers
Company during October of the current year:
Oct. 1.
Purchased merchandise from UK Imports Co., $15,347, terms FOB
destination, n/30.
3.
Purchased merchandise from Hoagie Co., $9,900, terms FOB
shipping point, 2/10, n/eom. Prepaid freight of $235 was added to
the invoice.
4.
Purchased merchandise from Taco Co., $13,150, terms FOB
destination, 2/10, n/30.
6.
Issued debit memo to Taco Co. for $4,550 of merchandise
returned...
Chapter 5: Journal Entries for a Retail Business Prepare journal entries for the following August transactions...
Chapter 5: Journal Entries for a Retail
Business
Prepare journal entries for the following August transactions at
the Moore Company:
August 1 Purchased
merchandise on account from Norris, Inc., $4,000, terms 2/10,
n/30.
5 Sold merchandise to Denton Company,
$5,500 on account. The cost of the merchandise is $4,100.
7 Returned $800 of merchandise purchased
August 1 from Norris, Inc. because it was defective.
Norris approved the return.
8 Purchased goods from Chambers, Inc., FOB
shipping...
Prepare journal entries to record the following sales transactions in Crane Company’s books. Crane uses a...
Prepare journal entries to record the following sales
transactions in Crane Company’s books. Crane uses a perpetual
inventory system. Jan. 2 Crane sold $11,000 of merchandise to
Xiaoyan Company, terms n/30, FOB shipping point. The cost of the
merchandise sold was $4,345. 4 The correct company paid freight
costs of $195. 6 Xiaoyan returned $1,100 of the merchandise
purchased on January 2 because it was not needed. The cost of the
merchandise returned was $430, and it was restored to...
Prepare journal entries to record the following merchandising transactions of Lowe’s, which uses the perpetual inventory...
Prepare journal entries to record the following merchandising
transactions of Lowe’s, which uses the perpetual inventory system
and the gross method. (Hint: It will help to identify each
receivable and payable; for example, record the purchase on August
1 in Accounts Payable—Aron.)
Aug.
1
Purchased merchandise from Aron Company for $5,000 under credit
terms of 1/10, n/30, FOB destination, invoice dated August 1.
5
Sold merchandise to Baird Corp. for $3,500 under credit terms of
2/10, n/60, FOB destination,...
Consider the following perpetual system merchandising transactions of Belton Company. Use a separate account for each...
Consider the following perpetual system merchandising
transactions of Belton Company. Use a separate account for each
receivable and payable; for example, record the sale on June 1 in
Accounts Receivable—Avery & Wiest.
June
1
Sold merchandise to Avery & Wiest for $9,500; terms 2/5,
n/15, FOB destination (cost of sales $6,650).
2
Purchased $4,900 of merchandise from Angolac Suppliers; terms
1/10, n/20, FOB shipping point.
4
Purchased merchandise inventory from Bastille Sales for
$11,400; terms 1/15, n/45, FOB Bastille Sales....
Prepare journal entries to record the following transactions for a retail store. The company uses a...
Prepare journal entries to record the following transactions for
a retail store. The company uses a perpetual inventory system and
the gross method.
Apr.
2
Purchased $5,600 of merchandise from Lyon Company with credit
terms of 2/15, n/60, invoice dated April 2, and FOB shipping
point.
3
Paid $370 cash for shipping charges on the April 2
purchase.
4
Returned to Lyon Company unacceptable merchandise that had an
invoice price of $650.
17
Sent a check to Lyon Company...
Prepare journal entries to record the following transactions for a retail store. The company uses a...
Prepare journal entries to record the following transactions for
a retail store. The company uses a perpetual inventory system and
the gross method.
Apr.
2
Purchased $4,100 of merchandise from Lyon Company with credit
terms of 2/15, n/60, invoice dated April 2, and FOB shipping
point.
3
Paid $210 cash for shipping charges on the April 2
purchase.
4
Returned to Lyon Company unacceptable merchandise that had an
invoice price of $600.
17
Sent a check to Lyon Company...
Abe's Printing Supply Company uses a perpetual inventory system. The company had the following transactions during...
Abe's Printing Supply Company uses a perpetual inventory system.
The company had the following transactions during August 2019
Aug. 5: Purchased $2,900 Of merchandise
on account: Freight and credit terms were FOB shipping point, 3/15,
n/60.
Aug. 9: Paid transportation costs of
$440 for t}us Aug. 5 purchase.
Aug. 10: Returned $600 of defective
merchandise that had been purchased on Aug. 5.
Aug. 15: Paid for the merchandise
purchased on Aug. 5.
Prepare journal entries for August 10 and 15....
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 7 minutes ago
asked 17 minutes ago
asked 34 minutes ago
asked 46 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 2 hours ago