Question

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 $9,450; terms 2/5, n/15, FOB destination (cost of sales $6,600).

2 Purchased $4,850 of merchandise from Angolac Suppliers; terms 2/10, n/20, FOB shipping point.

4 Purchased merchandise inventory from Bastille Sales for $11,300; terms 2/15, n/45, FOB Bastille Sales.

5 Sold merchandise to Gelgar for $10,900; terms 3/5, n/15, FOB destination (cost of sales $7,650).

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.

Answer 1

The journal entries for each transaction are given below
Date	General Journal	Debit	Credit
1-Jun	Accounts receivable - Avery & Wiest	$9,450
	Sales revenue		$9,450
	(To record goods sold on credit)
1-Jun	Cost of goods sold	$6,600
	Merchandise inventory		$6,600
	(To record cost of goods sold)
2-Jun	Merchandise inventory	$4,850
	Accounts payable - Angolac Suppliers		$4,850
	(To record merchandise purchased)
4-Jun	Merchandise inventory	$11,300
	Accounts payable - Bastille Sales		$11,300
	(To record merchandise purchased)
5-Jun	Accounts receivable - Gelgar	$10,900
	Sales revenue		$10,900
	(To record goods sold on credit)
5-Jun	Cost of goods sold	$7,650
	Merchandise inventory		$7,650
	(To record cost of goods sold)
6-Jun	Cash (9450-189)	$9,261
	Sales discount (9450*2%)	$189
	Accounts receivable - Avery & Wiest		$9,450
	(To record cash collected from customer)
12-Jun	Accounts payable - Angolac Suppliers	$4,850
	Merchandise inventory (4850*2%)		$97
	Cash (4850-97)		$4,753
	(To record cash paid to supplier)
20-Jun	Cash (9450-189)	$10,900
	Accounts receivable - Gelgar		$10,900
	(To record cash collected from customer)
30-Jun	Accounts payable - Bastille Sales	$11,300
	Cash (4850-97)		$11,300
	(To record cash paid to supplier)