ACC 100 Lecture 6: Chapter 6

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apricottoad69

3 Mar 2017

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You are a wholesaler who buys from suppliers overseas, from china and taiwan. Assume you are a wholesaler and you had the following transactions. Trans 1 - on april 18 you purchase 25 items from your supplier, on account, for each, credit terms 1/15, n/35, fob destination. Trans 2 - on april 19 the appropriate party pays the shipping costs of . Trans 3 - on april 30 you pay your supplier. Trans 4 - on may 15 you sell 12 of these items to a customer, on account, for each, Trans 5 - on may 16 the appropriate party pays freight of . Trans 6 - on may 18 the customer returns 2 of the items as they feel they ordered too many. The customer pays the return freight costs of . Trans 7 - on may 24 the customer pays the outstanding invoice. Record the impact of the above transactions on the expanded accounting equation.

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Nov.	3	Instructions: Journalize the transactions below (credit and debit) Purchased merchandise on account from Moonlight Co., list price $90,000, trade discount Discounts from the list prices in published catalogs or special discounts offered to certain classes of buyers. 25%, terms FOB destination Freight terms in which the seller pays the transportation costs from the shipping point to the final destination. , 2/10, n/30.
	4	Sold merchandise for cash, $36,900. The cost of the goods sold The cost that is reported as an expense when merchandise is sold. was $20,480.
	5	Purchased merchandise on account from Papoose Creek Co., $50,700, terms FOB shipping point Freight terms in which the buyer pays the transportation costs from the shipping point to the final destination. , 2/10, n/30, with prepaid freight of $750 added to the invoice The bill that the seller sends to the buyer. .
	6	Returned $12,750 ($17,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co.
	8	Sold merchandise on account to Quinn Co., $14,550 with terms n/15. The cost of the goods sold was $9,510.
	13	Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
	14	Sold merchandise on VISA, $239,110. The cost of the goods sold was $137,270.
	15	Paid Papoose Creek Co. on account for purchase of November 5.
	23	Received cash on account from sale of November 8 to Quinn Co.
	24	Sold merchandise on account to Rabel Co., $57,100, terms 1/10, n/30. The cost of the goods sold was $32,270.
	28	Paid VISA service fee of $3,700.
	30	Paid Quinn Co. a cash refund of $5,960 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,290.

pucewildebeest226

Journalize the following transactions related to merchandising operations that occurred in August while paying attention to the credit terms:

Aug 1 - Purchased merchandise on account from ABC $1,500, FOB shipping point, terms n/30. The party paying the freight paid it in cash.
Aug 3 - Received credit of $200 from ABC for merchandise with flaws that you decided to keep.
Aug 5 - Sold merchandise on account to customers $500, terms 1/10,n/30. Cost of the items sold $250.
Aug 9 - Paid ABC.
Aug 25 - Granted credit of $200 to customers for merchandise returned with cost $100.
Aug 26 - Received payments on account from customers $200.

periwinkleelephant730

This information relates to Locke Co.

On April 5, purchased merchandise from K. Austen Company for$21,980, terms 2/10, net/30, FOB shipping point.
On April 6, paid freight costs of $1,010 on merchandise purchasedfrom K. Austen Company.
On April 7, purchased equipment on account for $35,331.
On April 8, returned some of April 5 merchandise, which cost$3,536, to K. Austen Company.
On April 15, paid the amount due to K. Austen Company infull.
Instructions

(a) Prepare the journal entries to record these transactions on thebooks of Locke Co. using a periodic inventory system. (For multipledebit/credit entries, list amounts from largest to smallest e.g.10, 5, 3, 2. Round answers to 0 decimal places, e.g. 125.)

(b) Assume that Locke Co. paid the balance due to K. Austen Companyon May 4 instead of April 15. Prepare the journal entry to recordthis payment.

ACC 100 Lecture 6: Chapter 6

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