Question

Prepare journal entries to record the following merchandising transactions of Horus company, which uses the perpetual inventory system. All the transportation charges are paid in cash.

July		1		Purchased merchandise from Osiris Company for $6,500 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1.
		2		Sold merchandise to Anubis Co. for $950 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $542. Transportation charges is $50.
		3		Paid $135 cash for transportation charges on the purchase of July 1.
		8		Sold merchandise for $2,200 under credit terms of 2/0, n/60 that had cost $1,800 and the received the cash immediately on the day of the sale.
		9		Purchased merchandise from Thoth Co. for $2,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. Transportation charges is $115.
		11		Returned $200 of defective merchandise purchased from Thoth Co. for the part of the merchandise purchased on July 9.
		14		Received the balance due from Anubis Co. for the invoice dated July 2.
		14		Paid the balance due to Osiris Company.
		19		Sold merchandise that cost $1,000 to Ra Co. for $1,500 under credit terms of 2/15, n/60, FOB destination, invoice dated July 19. Transportation charges is $120.
		21		Issued a $250 credit memorandum to Ra Co. for an allowance on goods sold on July 19.
		23		Paid Thoth Co. the balance due.
		30		Received the balance due from Ra Co. for the invoice dated July 19.
		31		Sold merchandise that cost $5,300 to Anubis Co. for $6,900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Transportation charges is $1,220.

Answer 1