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

Draw a stem-and-leaf plot for the data set, Draw a stem-and-leaf plot for t...

Draw a stem-and-leaf plot for the data set. (Enter numbers from smallest to largest separated by spaces. Enter NONE for stems with no values.) Data set A: The annual wages of emp

Explain about merchandise inventory, Q. Explain about Merchandise inventory...

Q. Explain about Merchandise inventory? Merchandise inventory is the quantity of goods assumed by a merchandising company for resale to customers. Merchandising companies verif

Determine how the disallowance of lifo, determine how the disallowance of L...

determine how the disallowance of LIFO will impact U.S. multinational firms that report under IFRS

Meaning of periodic review, Ordering inventory at a regular and set time in...

Ordering inventory at a regular and set time interval

calculate wacc and rate of return, Calculate WACC and Rate of Return ...

Calculate WACC and Rate of Return Capital Structure: 50% debt and 50% equity financing Current cost of debt is 2% above prime (Prime is currently 2.5%) cost of equity is e

Service revenue earned on account, Service revenue earned on account M...

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

Explain about perpetual inventory procedure, Q. Explain about perpetual inv...

Q. Explain about perpetual inventory procedure? When discussing inventory we require clarifying whether we are referring to the physical goods on hand or the Merchandise Invent

What is owner equity, What is OWNER'S EQUITY Difference between Liabili...

What is OWNER'S EQUITY Difference between Liabilities and Assets is Owner's Equity. The can also be known as capital, proprietorship, or net worth.

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