Preparing journal entries for merchandising activities, Accounting Basics

Assignment Help:

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.


Related Discussions:- Preparing journal entries for merchandising activities

Receivable trouble debt, Obtain the relevant authoritative literature on ac...

Obtain the relevant authoritative literature on accounting for accounts receivable using the FASB''s Codification Research System at the FASB website. What is the specific citation

Trial balance, 2013, May 1st: 1 started in bnusiness with capital in cash o...

2013, May 1st: 1 started in bnusiness with capital in cash of 1,800 and 4,200 in the bank. 2nd: Bought goods on credit from: j.Ward 600, P.Green 515

What is cost of goods sold, Q. What is Cost of goods sold? The second m...

Q. What is Cost of goods sold? The second major division of an income statement for a merchandising business is cost of goods sold. Cost of goods sold is denotes to cost to the

Accounts show the amount of money owed to the firm, accounts show the amoun...

accounts show the amount of money owed to the firm by customers. A. Supply B. Prepaid C. Receivables D. Payables

Why is it more difficult to account for the inventory, Why is it more diff...

Why is it more difficult to account for the inventory of a manufacturing firm than for that of a merchandising firm?

The operating expenses section, The operating expenses section Operati...

The operating expenses section Operating Expenses - directly associated to the sale of merchandise General expenses (administrative expenses) related to business's offic

Computerised accounting systems, The organization's name is Coffee Affectio...

The organization's name is Coffee Affectionardo Pty Ltd and the company imports and sell various  types  of coffee  machines, grinders,  filters and beans. The business has two dir

Suppose you want to have $5, Suppose you want to have $5,000 saved at the e...

Suppose you want to have $5,000 saved at the end of five years. The bank will pay 2% interest on your money. How much would you have to deposit today to have the $5,000 you want

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd