Preparing journal entries for merchandising activities, Accounting Basics

Can you explain to me how you did it? As well as putting it in a excel format but make it not take a lot of papers to print it out. A girl in my class said you can use a paint program to do that.

Preparing journal entries for merchandising activities- perpetual system

Prepare journal entries to record the following merchandising transactions of Stone Company ‘which piles the perpetual inventory system. (Hint. It will help to identify each receivable & payable for example, record the purchase on August 1 in accounts payable - Abilene)

August 1 purchased merchandise from Abilene Company for $6,000 under credit terms of 1/10, n/30, FOB destination. Invoice dated August 1.

4 At Abilene's request. Stone paid $100 cash for freight charges on the August 1 purchase, reducing the amount owed to Abilene
5 Sold merchandise to Lux Corp. for $4,200 under credit terms of 2/10, n/60 FOB destination invoice dated August 5. The merchandise had cost $3,000

8 Purchased merchandise from Welch Corporation for $5,300 under credit terms of 1/10, n/45 FOB shipping point invoice dated August 8. The invoice showed that at Stone's request. Welch paid the $240 shipping charges and added the amount to the bill. (Hint. Discounts are not applied to freight and shipping charges.)

9 Paid $120 cash for shipping charges related to the August 5 sale to Lux Corp.

10 Lux returned merchandise from the August 5 sale that had cost Stone $500 and been sold for $700. The merchandise was restored to inventory.

12 After negotiations with Welch Corporation concerning problems with the merchandise purchased on August 8 Stone received a credit memorandum from Welch granting a price reduction of $800

15 Received balance due from Lux Corp for the August 5 sale less the return on August 10
18 Paid the amount due to Welch Corporation for the August 8 purchase less the price reduction granted

19 Sold merchandise to Trax Co for $3,60 under credit terms of 1/10, n/30 FOB shipping point, invoice dated August 19. The merchandise had cost $2,500

22 Trax requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Stone sent Trax a $600 credit memorandum to resolve the issue.

29 Received Trax's cash payment for the amount due from the August 19 sale.

30 Paid Abilene Company the amount due from the August 1 purchase.

Posted Date: 3/18/2013 3:18:36 AM | Location : United States

Related Discussions:- Preparing journal entries for merchandising activities, Assignment Help, Ask Question on Preparing journal entries for merchandising activities, Get Answer, Expert's Help, Preparing journal entries for merchandising activities Discussions

Write discussion on Preparing journal entries for merchandising activities
Your posts are moderated
Related Questions
Ask 1. What is the organization that is responsible for setting International Financial Reporting Standards? 2. What is the main company that Professor Levine uses for illustratio

Explain about the payroll register This is a summary of gross earnings, deductions and net pay for all employees for a specific payroll period. Register illustrates all amounts

Liquidity Ratios (Short Term Solvency Ratios):   These Ratios calculate the capability of the firm to meet its current obligations. They point out whether the firm has enough li

Service revenue earned on account Metro performed courier deliverance services for a customer who agreed to pay USD 900 at a later date. The company approved credit rather tha

Question : The several evaluative criteria for evaluating revenue measure or system are: ? Yield ? Political expediency ? Ease of administration ? Consistency

Q. Objectives of financial reporting? Financial reporting objectives are the broad overriding objectives sought by accountants engaging in financial reporting. According to the

In accounting, only those facts that can be expressed in terms of money are recorded. When money is accepted not merely as a medium of exchange but also as a measuring rod of value

An invoice for product X totals $1,200 and is dated July 6, 2000 with terms 2/10-60X. If the invoice is paid on September 3, 2000, what is the net amount of payment? A. $912