ACCT 225 Chapter Notes - Chapter 4: Accounts Receivable, Trial Balance, Deferral

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raspberryalligator834

8 Feb 2016

School

Department

Accounting

Course

ACCT 225

Professor

Allwright

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Document Summary

(1) prepare journal entries to record the following transactions for a retail store. Purchased merchandise from lyon company under the following terms: ,600 price, invoice dated april 2, credit terms of 2/15, n/60, and fob shipping point. Paid for shipping charges on the april 2 purchase. Returned to lyon company unacceptable merchandise that had an invoice price of . Sent a check to lyon company for the april 2 purchase, net of the discount and the returned merchandise. Purchased merchandise from frist corp. under the following terms: ,650 price, invoice dated april 18, credit terms of 2/10, n/30, and fob destination. After negotiations, received from frist a ,142 allowance on the april 18 purchase. Sent check to frist paying for the april 18 purchase, net of the discount and allowance. Note: 2/15 means take a 2% discount if you pay within 15 days, otherwise the entire amount is due in 60 days.

Related Questions

Wiset Company completes these transactions during April of thecurrent year (the terms of all its credit sales are 2/10,n/30).

Apr. 2 Purchased $14,600 of merchandise on credit from NothCompany, invoice dated April 2, terms 2/10, n/60.

Apr. 3 Sold merchandise on credit to Brooke Page Alistair,Invoice No. 760, for $4,600 (cost is $3,100).

Apr. 3 Purchased $1,590 of office supplies on credit fromCuster, Inc. Invoice dated April 2, terms n/10 EOM.

Apr. 4 Issued Check No. 587 to WorldView for advertising expense, $850.

Apr. 5 Sold merchandise on credit to Paula Kohr, Invoice No.761, for $8,900 (cost is $7,600).

Apr. 6 Received an $70 credit memorandum from Custer, Inc., forthe return of some of the office supplies received on April 3.

Apr. 9 Purchased $11,620 of store equipment on credit from HalâsSupply, invoice dated April 9, terms n/10 EOM.

Apr. 11 Sold merchandise on credit to Nic Nelson, Invoice No.762, for $10,200 (cost is $7,300).

Apr. 12 Issued Check No. 588 to Noth Company in payment of itsApril 2 invoice, less the discount.

Apr. 13 Received payment from Page Alistair for the April 3sale, less the discount.

Apr. 13 Sold $6,300 of merchandise on credit to Page Alistair(cost is $4,500), Invoice No. 763.

Apr. 14 Received payment from Paula Kohr for the April 5 sale,less the discount.

Apr. 16 Issued Check No. 589, payable to Payroll, in payment ofsales salaries expense for the first half of the month, $9,150.Cashed the check and paid employees.

Apr. 16 Cash sales for the first half of the month are $56,070(cost is $40,000). (Cash sales are recorded daily from cashregister data but are recorded only twice in this problem to reducerepetitive entries.)

Apr. 17 Purchased $14,200 of merchandise on credit from GrantCompany, invoice dated April 17, terms 2/10, n/30.

Apr. 18 Borrowed $72,000 cash from First State Bank by signing along-term note payable.

Apr. 20 Received payment from Nic Nelson for the April 11 sale,less the discount.

Apr. 20 Purchased $820 of store supplies on credit from HalâsSupply, invoice dated April 19, terms n/10 EOM.

Apr. 23 Received a $1,000 credit memorandum from Grant Companyfor the return of defective merchandise received on April 17.

Apr. 23 Received payment from Page Alistair for the April 13sale, less the discount.

Apr. 25 Purchased $11,800 of merchandise on credit from NothCompany, invoice dated April 24, terms 2/10, n/60.

Apr. 26 Issued Check No. 590 to Grant Company in payment of itsApril 17 invoice, less the return and the discount.

Apr. 27 Sold $3,480 of merchandise on credit to Paula Kohr,Invoice No. 764 (cost is $2,490).

Apr. 27 Sold $8,700 of merchandise on credit to Nic Nelson,Invoice No. 765 (cost is $4,230).

Apr. 30 Issued Check No. 591, payable to Payroll, in payment ofthe sales salaries expense for the last half of the month,$9,150.

Apr. 30 Cash sales for the last half of the month are $72,500(cost is $66,200).

Assume that Wiset Co. uses the perpetual inventory system.

1.1 Review the April transactions of Wiset Company and enterthose transactions that should be journalized in the purchasesjournal.

1.2 Review the April transactions of Wiset Company and enterthose transactions that should be journalized in the cashdisbursements journal.

1.3 Prepare a general journal. Review the April transactions ofWiset Company and enter those transactions that should bejournalized in the general journal.

2. Enter the March 31 balances of Cash ($85,000), Inventory($138,000), Long-Term Notes Payable ($123,000), and B. Wiset,Capital ($100,000). Post the total amounts from the journal in thefollowing general ledger accounts and in the accounts payablesubsidiary ledger accounts for Halâs Supply, Noth Company, GrantCompany and Custer, Inc.

4.1 Prepare a trial balance.

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