Question
In: Accounting
Aug. 1 Purchased merchandise from Abilene Company for $4,800 under credit terms of 1/10, n/30, FOB...
Aug. 1
Purchased merchandise from Abilene Company for $4,800 under
credit terms of 1/10, n/30, FOB destination, invoice dated August
1.
4
At Abilene's request, Stone paid $400 cash for freight charges
on the August 1 purchase, reducing the amount owed to
Abilene.
5
Sold merchandise to Lux Corp. for $3,360 under credit terms of
2/10, n/60, FOB destination, invoice dated August 5. The
merchandise had cost $2,399.
8
Purchased merchandise from Welch Corporation for $4,100 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 that amount to the bill. (Hint:
Discounts are not applied to freight and shipping charges.)
9
Paid $230 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 $400 and been sold for $560. 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 $619.
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 $2,880 under credit terms of
1/10, n/30, FOB shipping point, invoice dated August 19. The
merchandise had cost $1,999.
22
Trax requested a price reduction on the August 19 sale because
the merchandise did not meet specifications. Stone sent Trax a $480
credit memorandum to resolve the issue.
29
Received Trax's cash payment for the amount due from the
August 19 sale.
30
Paid Abilene Company the amount due from the August 1
purchase.
Prepare journal entries to record the above merchandising
transactions of Stone Company, which applies the perpetual
inventory system. (Identify each receivable and payable; for
example, record the purchase on August 1 in Accounts
Payable—Abilene.) (Round your answer to nearest dollar amount. Omit
the "$" sign in your response.)
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Aug. 1 Purchased merchandise from Abilene Company for $4,800 under credit terms of 1/10, n/30, FOB...
Aug. 1
Purchased merchandise from Abilene Company for $4,800 under
credit terms of 1/10, n/30, FOB destination, invoice dated August
1.
4
At Abilene's request, Stone paid $400 cash for freight charges
on the August 1 purchase, reducing the amount owed to
Abilene.
5
Sold merchandise to Lux Corp. for $3,360 under credit terms of
2/10, n/60, FOB destination, invoice dated August 5. The
merchandise had cost $2,399.
8
Purchased merchandise from Welch Corporation for $4,100 under
credit terms of...
Aug. 1 Purchased merchandise from Aron Company for $7,500 under credit terms of 1/10, n/30, FOB...
Aug. 1 Purchased merchandise from Aron Company for $7,500 under
credit terms of 1/10, n/30, FOB destination, invoice dated August
1. Aug. 5 Sold merchandise to Baird Corp. for $5,200 under credit
terms of 2/10, n/60, FOB destination, invoice dated August 5. The
merchandise had cost $4,000. Aug. 8 Purchased merchandise from
Waters Corporation for $5,400 under credit terms of 1/10, n/45, FOB
shipping point, invoice dated August 8. Aug. 9 Paid $125 cash for
shipping charges related to the...
Aug. 1 Purchased merchandise from Arotek Company for $7,100 under credit terms of 1/10, n/30, FOB...
Aug.
1
Purchased merchandise from Arotek Company for $7,100 under
credit terms of 1/10, n/30, FOB destination, invoice dated August
1.
5
Sold merchandise to Laird Corp. for $4,970 under credit terms of
2/10, n/60, FOB destination, invoice dated August 5. The
merchandise had cost $3,549.
8
Purchased merchandise from Waters Corporation for $6,400 under
credit terms of 1/10, n/45, FOB shipping point, invoice dated
August 8. The invoice showed that at Sheng’s request, Waters paid
the $240 shipping charges...
July 1 Purchased merchandise from Boden Company for $6,700 under credit terms of 2/15, n/30, FOB...
July
1
Purchased merchandise from Boden Company for $6,700 under
credit terms of 2/15, n/30, FOB shipping point, invoice dated July
1.
2
Sold merchandise to Creek Co. for $900 under credit terms of
2/10, n/60, FOB shipping point, invoice dated July 2. The
merchandise had cost $558.
3
Paid $120 cash for freight charges on the purchase of July
1.
8
Sold merchandise that had cost $2,000 for $2,400 cash.
9
Purchased merchandise from Leight Co. for $2,300 under...
July 1 Purchased merchandise from Boden Company for $6,600 under credit terms of 2/15, n/30, FOB...
July 1 Purchased merchandise from Boden Company for $6,600 under
credit terms of 2/15, n/30, FOB shipping point, invoice dated July
1. 2 Sold merchandise to Creek Co. for $950 under credit terms of
2/10, n/60, FOB shipping point, invoice dated July 2. The
merchandise had cost $550. 3 Paid $120 cash for freight charges on
the purchase of July 1. 8 Sold merchandise that had cost $1,900 for
$2,300 cash. 9 Purchased merchandise from Leight Co. for $2,500
under...
Aug. 1 Purchased merchandise on account from Arotek Company for $7,500, FOB destination. 5 Sold merchandise...
Aug.
1
Purchased merchandise on account from Arotek Company for $7,500,
FOB destination.
5
Sold merchandise on account to Laird Corp. for $5,200. The
merchandise had cost $4,000.
8
Purchased merchandise on account from Waters Corporation for
$5,400, FOB shipping point. The invoice showed that at Sheng’s
request, Waters paid the $140 shipping charges and added that
amount to the bill.
10
Laird returned merchandise from the August 5 sale that had cost
Sheng $400 and been sold for $600....
A company purchased $11,900 of merchandise on June 15 with terms of 2/10, n/45, and FOB...
A company purchased $11,900 of merchandise on June 15 with terms
of 2/10, n/45, and FOB shipping point. The freight charge, $1,450,
was added to the invoice amount. On June 20, it returned $2,320 of
that merchandise. On June 24, it paid the balance owed for the
merchandise taking any discount it is entitled to. The cash paid on
June 24 equals:
Purchased inventory that cost $5,200 on account from Ross Company under terms 2/10, n/30. The merchandise...
Purchased inventory that cost $5,200 on account from Ross
Company under terms 2/10, n/30. The merchandise was delivered FOB
shipping point. Freight costs of $470 were paid in cash.
Returned $400 of the inventory it had purchased because the
inventory was damaged in transit. The seller agreed to pay the
return freight cost.
Paid the amount due on its account payable to Ross Company
within the cash discount period.
Sold inventory that had cost $5,700 for $8,700 on account,
under...
1. The Stationery Company purchased merchandise on account from a supplier for $11,000, terms 1/10, n/30....
1. The Stationery Company purchased merchandise on account from
a supplier for $11,000, terms 1/10, n/30. The Stationery Company
returned merchandise with an invoice amount of $1,300 and received
full credit.
a. If The Stationery Company pays the invoice
within the discount period, what is the amount of cash required for
the payment?
$___________________
b. Under a perpetual inventory system, what
account is credited by The Stationery Company to record the
return
Jun 4 Willem Corporation purchased $4,000 worth of merchandise, terms 3/10, n/30, FOB shipping point, from...
Jun 4 Willem Corporation purchased $4,000 worth of merchandise,
terms 3/10, n/30, FOB shipping point, from Cate Corporation. The
cost of the merchandise to Cate was $2,600.
6 The appropriate party paid shipping costs of $150.
10 Willem returned $700 worth of goods to Cate for full credit.
The goods had a cost of $450 to Cate and were placed back into
inventory.
12 Willem paid Cate the outstanding balance.
Required
Prepare the journal entries to record these transactions in...
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