Question

Sales 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, $53,100, terms FOB shipping point, 2/10, n/30. Swan paid freight of $1,555, which was added to the invoice. The cost of the goods sold was $36,260. 8. Swan Company sold merchandise on account to Bird Company, $43,850, terms FOB destination, 1/15, n/eom. The cost of the goods sold was $27,180. 8. Swan Company paid freight of $1,105 for delivery of merchandise sold to Bird Company on April 8. 12. Bird Company paid Swan Company for purchase of April 2. 23. Bird Company paid Swan Company for purchase of April 8. 24. Swan Company sold merchandise on account to Bird Company, $64,710, terms FOB shipping point, n/eom. The cost of the goods sold was $36,120. 25. Swan Company paid Bird Company a cash refund of $2,380 for damaged merchandise in the April 8 sale. Bird Company kept the merchandise. 26. Bird Company paid freight of $840 on April 24 purchase from Swan Company. 30. Bird Company paid Swan Company on account for purchase of April 24. Required: 1. Journalize the April transactions for Swan Company (the seller). If an amount box does not require an entry, leave it blank.

Answer 1

Record the following journal entries:

Date	Account Title and Explanation	Debit	Credit
Apr 2	Accounts receivable - BC Inc	$52,038
	Sales revenue ($53,100 × (1 − 2%))		$52,038
	To record sale of inventory
Apr 2	Cost of goods sold	$36,260
	Merchandise inventory		$36,260
	To record cost of goods sold
Apr 2	Accounts receivable - BC Inc	$1,555
	Cash		$1,555
	To record freight paid on behalf of BS inc
Apr 8	Accounts receivable - BC Inc	$43,411.5
	Sales revenue ($43,850 × (1 − 1%))		$43,411.5
	To record sale of inventory
Apr 8	Cost of goods sold	$27,180
	Merchandise inventory		$27,180
	To record cost of goods sold
Apr 8	Delivery expenses	$1,105
	Cash		$1,105
	To record delivery expenses paid
Apr 12	Cash (52,308 + $1,555)	$53,593
	Accounts receivable - BC Inc		$53,593
	To record cash collected on account
Apr 23	Cash	$43,411.5
	Accounts receivable - BC Inc		$43,411.5
	To record cash collected on account
Apr 24	Accounts receivable - BC Inc	$64,710
	Sales revenue		$64,710
	To record sale of inventory
Apr 24	Cost of goods sold	$36,120
	Merchandise inventory		$36,120
	To record cost of goods sold
Apr 25	Customer refunds payable	$2,380
	Cash		$2,380
	To record cash refund
Apr 26	No entry required
Apr 30	Cash	$64,710
	Accounts receivable - BC Inc		$64,710
	To record cash collected on account