Question

June 1 Sold merchandise to Avery & Wiest for $10,000; terms 1/5, n/15, FOB destination (cost of sales $7,150). 2 Purchased $5,400 of merchandise from Angolac Suppliers; terms 3/10, n/20, FOB shipping point. 4 Purchased merchandise inventory from Bastille Sales for $12,400; terms 3/15, n/45, FOB Bastille Sales. 5 Sold merchandise to Gelgar for $12,000; terms 1/5, n/15, FOB destination (cost of sales $8,200). 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. 1. Record the sales; terms 1/5, n/15, FOB destination. 2. Record the cost of sales. 3. Record the purchase of merchandise; terms 3/10, n/20, FOB shipping point. 4. Record the purchase of merchandise; terms 3/15, n/45, FOB Bastille Sales. 5.Record the sales; terms 1/5, n/15, FOB destination. 6.Record the cost of sales. 7.Record the collection for Avery & Wiest. 8.Record the payment for Angolac Suppliers. 9.Record the collection. 10. Record the payment. a. Calculate Net sales. b. Calculate Cost of goods sold. c. Calculate Gross profit from sales.

Answer 1

The journal entries for each transaction are given below
Date	General Journal	Debit	Credit
1-Jun	Accounts receivable - Avery & Wiest	$10000
	Sales revenue		$10000
	(To record goods sold on credit)
1-Jun	Cost of goods sold	$7150
	Merchandise inventory		$7150
	(To record cost of goods sold)
2-Jun	Merchandise inventory	$5400
	Accounts payable - Angolac Suppliers		$5400
	(To record merchandise purchased)
4-Jun	Merchandise inventory	$12400
	Accounts payable - Bastille Sales		$12400
	(To record merchandise purchased)
5-Jun	Accounts receivable - Gelgar	$12000
	Sales revenue		$12000
	(To record goods sold on credit)
5-Jun	Cost of goods sold	$8200
	Merchandise inventory		$8200
	(To record cost of goods sold)
6-Jun	Cash (10000*0.99)	$9,900
	Sales return and allowances [discount] (10000*1%)	$100
	Accounts receivable - Avery & Wiest		$10000
	(To record cash collected from customer)
12-Jun	Accounts payable - Angolac Suppliers	$5400
	Merchandise inventory (5400*3%)		$162
	Cash		$5238
	(To record cash paid to supplier)
20-Jun	Cash	$12000
	Accounts receivable - Gelgar		$12000
	(To record cash collected from customer)
30-Jun	Accounts payable - Bastille Sales	$12400
	Cash		$12400
	(To record cash paid to supplier)

Sales revenue [10000+12000]	22000
less: sales return and allowances	-100
Net sales	21900
Cost of goods sold [ 7150+8200]	15350
Gross profit	6500