Reference no: EM132850072

Question 1 - Journalize the following sales related transactions.

a) Sold merchandise on account to Jangle Co., $5,000, terms FOB Shipping Point, 2/10, n/30. The cost of the merchandise sold was $3,000. Paid transportation charges of $200 on behalf of buyer, which were added to the invoice.

b) Sold merchandise on account to Comet Co., $10,000, terms FOB Destination, 1/10, n/30. The cost of the merchandise was $6,000.

c) Paid transportation charges of $400 for delivery of merchandise sold to Comet Co.

d) Issued credit memorandum for $2,000 to Comet Co. for merchandise returned from sale in and the cost of the merchandise was $1,200.

e) Received amount due from Jangle Co. within the discount period.

f) Received amount due, less return and discount from Comet Co.

Question 2 - The following is a series of related transactions between Leggy Pants and Viking, a chain of retail clothing stores:

Sept. 11 Leggy Pants sold Viking 200 pairs of pants on account, terms 2/10, n/30. The cost of these pants to Leggy Pants was $30 per pair, and the sales price was $70 per pair.

Sept. 15 Viking returned 5 pairs of pants to Leggy Pants because they were the wrong size. Leggy Pants allowed Viking full credit for this return.

Sept. 21 Viking paid the remaining balance due to Leggy Pants within the discount period.

Both companies use a Perpetual Inventory system.

Required -

1. Record these series of transactions in the general journal of Leggy Pants.

2. Record these series of transactions in the general journal of Viking.

3. Record the transactions in

i- Leggy Pants if receive collection after discount period

ii- Viking if pays after discount period.