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 $9,850; terms 2/5, n/15, FOB destination (cost of sales $7,000).
        2 Purchased $5,250 of merchandise from Angolac Suppliers; terms 2/10, n/20, FOB shipping point.
        4 Purchased merchandise inventory from Bastille Sales for $12,100; terms 3/15, n/45, FOB Bastille Sales.
        5 Sold merchandise to Gelgar for $11,700; terms 1/5, n/15, FOB destination (cost of sales $8,050).
        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.)



Part 2:
Based on the information provided above, calculate the following:

a. Calculate Net sales.




b. Calculate Cost of goods sold.



c. Calculate Gross profit from sales.

Answer 1

Date	Particulars	Accounts	Debit ($)	Credit ($)
1 June	Sold merchandise to Avery & Wiest for $9,850	Account Receivable - Avery & Wiest	9,850
		Sales		9,850
2 June	Purchased $5,250 of merchandise from Angolac	Inventory	5,250
		Accounts Payable - Angolac		5,250
4 June	Purchased merchandise inventory from Bastille Sales for $12,100	Inventory	12,100
		Accounts Payable - Bastille Sales		12,100
5 June	Sold merchandise to Gelgar for $11,700	Account Receivable - Gelgar	11,700
		Sales		11,700
6 June	Collected the amount owing from Avery & Wiest	Cash	9,850
		Account Receivable - Avery & Wiest		9,850
12 June	Paid Angolac Suppliers for the June 2 purchase	Accounts Payable - Angolac	5,250
		Cash		5,250
20 June	Collected the amount owing from Gelgar regarding the June 5 sale	Cash	11,700
		Account Receivable - Gelgar		11,700
30 June	Paid Bastille Sales for the June 4 purchase	Accounts Payable - Bastille Sales	12,100
		Cash		12,100

_________________________________________________________________________________

Net Sales = Avery & Wiest (9,850) + Gelger (11,700) = $21,550

Cost of goods sold = Avery & Wiest (7,000) + Gelger (8,050) = $15,050

Gross Profit from Sales = Net Sales - Cost of good sold = $6,500