In: Accounting
Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System
The following selected transactions were completed during April
between Swan Company and Bird Company:
Apr.2. | Swan Company sold merchandise on account to Bird Company, $13,600, terms FOB shipping point, 2/10, n/30. Swan Company paid freight of $265, which was added to the invoice. The cost of the merchandise sold was $8,600. |
8. | Swan Company sold merchandise on account to Bird Company, $29,000, terms FOB destination, 1/15, n/30. The cost of the merchandise sold was $17,400. |
8. | Swan Company paid freight of $680 for delivery of merchandise sold to Bird Company on April 8. |
12. | Bird Company paid Swan Company for purchase of April 2. |
18. | Swan Company paid Bird Company a refund of $2,000 for defective merchandise in the April 2 purchase. Bird Company agreed to keep the merchandise. |
23. | Bird Company paid Swan Company for purchase of April 8. |
24. | Swan Company sold merchandise on account to Bird Company, $14,300, terms FOB shipping point, n/45. The cost of the merchandise sold was $8,600. |
26. | Bird Company paid freight of $420 on April 24 purchase from Swan Company. |
30. | Swan Company granted a customer allowance (credit memo) to Bird Company for $11,300 for merchandise that was returned from the August 24 purchase. The cost of the merchandise returned was $6,500. |