Question

Part 1:
Consider the following perpetual system merchandising transactions of Belton Company. Use a separate account for each receivable and payable; for example, record the sale on June 1 in Accounts Receivable—Avery & Wiest.

June 1 Sold merchandise to Avery & Wiest for $9,400; terms 2/5, n/15, FOB destination (cost of sales $6,550).
        2 Purchased $4,800 of merchandise from Angolac Suppliers; terms 1/10, n/20, FOB shipping point.
        4 Purchased merchandise inventory from Bastille Sales for $11,200; terms 1/15, n/45, FOB Bastille Sales.
        5 Sold merchandise to Gelgar for $10,800; terms 2/5, n/15, FOB destination (cost of sales $7,600).
        6 Collected the amount owing from Avery & Wiest regarding the June 1 sale.
     12 Paid Angolac Suppliers for the June 2 purchase.
      20 Collected the amount owing from Gelgar regarding the June 5 sale.
      30 Paid Bastille Sales for the June 4 purchase.

Prepare General Journal entries to record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

example

Journal entry worksheet

• Record the sales; terms 2/5, n/15, FOB destination.

Note: Enter debits before credits.

	Date General Journal Debit Credit June 01 Cost of goods sold 6,550 Merchandise inventory 6,550

Calculate net sales

calculate costs of goods

calculate gross profit from sales

Answer 1

Solution 1:

Journal Entries - Belton Company
Event	Particulars	Debit	Credit
1-Jun	Accounts receivables - Avery & Wiest Dr	$9,400.00
	To Sales revenue		$9,400.00
	(To record sales revenue)
1-Jun	Cost of goods sold Dr	$6,550.00
	To Merchandise Inventory		$6,550.00
	(To record cost of goods sold)
2-Jun	Merchandise inventory Dr	$4,800.00
	To Accounts Payable - Angolac Suppliers		$4,800.00
	(To record merchandise purchased)
4-Jun	Merchandise inventory Dr	$11,200.00
	To Accounts Payable - Bastille Sales		$11,200.00
	(To record merchandise purchased)
5-Jun	Accounts receivables - Gelgar Dr	$10,800.00
	To Sales revenue		$10,800.00
	(To record sales revenue)
5-Jun	Cost of goods sold Dr	$7,600.00
	To Merchandise Inventory		$7,600.00
	(To record cost of goods sold)
6-Jun	Cash Dr	$9,212.00
	Sales discounts Dr	$188.00
	To Accounts receivables - Avery & Wiest		$9,400.00
	(To record collection from receivables)
12-Jun	Accounts Payable - Angolac Suppliers Dr	$4,800.00
	To Cash		$4,752.00
	To Merchandise inventory		$48.00
	(To record payment to supplier)
20-Jun	Cash Dr	$10,800.00
	To Accounts receivables - Gelgar		$10,800.00
	(To record collection from receivables)
30-Jun	Accounts Payable - Bastille Sales Dr	$11,200.00
	To Cash		$11,200.00
	(To record payment to supplier)

Solution 2:

Net Sales = $9,400 + $10,800 - $188 = $20,012

Solution 3:

Cost of goods sold = $6,550 + $7,600 = $14,150

Solution 4:

Gross profit from sales = $20,012 - $14,150 = $5,862