Question

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, $14,400, terms FOB shipping point, 1/10, n/30. Swan Company paid freight of $520, which was added to the invoice. The cost of the merchandise sold was $9,100.
8.	Swan Company sold merchandise on account to Bird Company, $22,000, terms FOB destination, 2/15, n/30. The cost of the merchandise sold was $13,200.
8.	Swan Company paid freight of $690 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, $10,900, terms FOB shipping point, n/45. The cost of the merchandise sold was $6,500.
26.	Bird Company paid freight of $430 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.

Required:

1. Journalize the April transactions for Bird Company (the buyer).

Date	Account	Debit	Credit
Apr. 2

Date	Account	Debit	Credit
Apr. 8

Date	Account	Debit	Credit
Apr. 12

Date	Account	Debit	Credit
Apr. 18

Date	Account	Debit	Credit
Apr. 23

Date	Account	Debit	Credit
Apr. 24

Date	Account	Debit	Credit
Apr. 26

Date	Account	Debit	Credit
Apr. 30

2. Journalize the April transactions for Swan Company (the seller).

Date	Account	Debit	Credit
Apr. 2-sale

Date	Account	Debit	Credit
Apr. 2-freight

Date	Account	Debit	Credit
Apr. 2-cost

Date	Account	Debit	Credit
Apr. 8-sale

Date	Account	Debit	Credit
Apr. 8-cost

Date	Account	Debit	Credit
Apr. 8-freight

Date	Account	Debit	Credit
Apr. 12

Date	Account	Debit	Credit
Apr. 18

Date	Account	Debit	Credit
Apr. 23

Date	Account	Debit	Credit
Apr. 24-sale

Date	Account	Debit	Credit
Apr. 24-cost

Date	Account	Debit	Credit
Apr. 30

Date	Account	Debit	Credit
Apr. 30

all info.

Answer 1

Bird Company

Date	Account	Debit	Credit
Apr-02	Merchandise inventory ($14256 + $520)	$ 14,776
	Accounts Payable-Swan Company		$ 14,776
Apr-08	Merchandise inventory	$ 21,560
	Accounts Payable-Swan Company		$ 21,560
Apr-12	Accounts Payable-Swan Company	$ 14,776
	Cash		$ 14,776
Apr-18	Cash	$    2,000
	Merchandise inventory		$    2,000
Apr-23	Accounts Payable-Swan Company	$ 21,560
	Cash		$ 21,560
Apr-24	Merchandise inventory	$ 10,900
	Accounts Payable-Swan Company		$ 10,900
Apr-26	Merchandise inventory	$        430
	Cash		$        430
Apr-30	Accounts Payable-Swan Company	$ 11,300
	Merchandise inventory		$ 11,300

Swan Copmany

Date	Account	Debit	Credit
Apr-02	Accounts Receivable-Bird Company	$ 14,256
	Sales ($14400 - [$14400*1%])		$ 14,256
Apr-02	Accounts Receivable-Bird Company	$        520
	Cash		$        520
Apr-02	Cost of Merchandise Sold	$    9,100
	Merchandise inventory		$    9,100
Apr-08	Accounts Receivable-Bird Company	$ 21,560
	Sales ($22000 - [$22000*2%])		$ 21,560
Apr-08	Cost of Merchandise Sold	$ 13,200
	Merchandise inventory		$ 13,200
Apr-08	Delivery Expense	$        690
	Cash		$        690
Apr-12	Cash ($14256 + $520)	$ 14,776
	Accounts Receivable-Bird Company		$ 14,776
Apr-18	Customer Refund Payable	$    2,000
	Cash		$    2,000
Apr-23	Cash	$ 21,560
	Accounts Receivable-Bird Company		$ 21,560
Apr-24	Accounts Receivable-Bird Company	$ 10,900
	Sales		$ 10,900
Apr-24	Cost of Merchandise Sold	$    6,500
	Merchandise inventory		$    6,500
Apr-30	Customer Refund Payable	$ 11,300
	Accounts Receivable-Bird Company		$ 11,300
Apr-30	Merchandise inventory	$    6,500
	Estimated Returns Inventory		$    6,500