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In: Accounting

The MEC Store uses a perpetual inventory system. The following transactions occurred during March 2022:


 The MEC Store uses a perpetual inventory system. The following transactions occurred

 during March 2022:

 March 2 Purchased merchandise from Flake Co. for $5,600 under credit terms of 1/15, n/30,

 FOB factory.

 3 Paid $280 for shipping charges on the March 2nd purchase.

 5 Sold merchandise to Shingle Co. for $3,700 under credit terms of 2/10, n/30, FOB shipping point. The cost of the merchandise was $1,780.

 6 Received a $1,200 credit memorandum acknowledging the return of merchandise

 purchased on March 2.

 7 Shingle Co. requested a price reduction on the March 5 sale because the

 merchandise did not meet specifications. Sent Shingle Co. a credit memorandum for

 $400 to resolve the issue.

 8 Received Shingle Co.'s payment of the amount due from the March 5 sale.

 13 Paid the balance due to Flake Co.

 18 Sold merchandise to a customer for $8,400 cash. The merchandise cost $4,680.

 20 Paid $826 March telephone bill.

 Instructions;

 Record the above transactions in the General Joumal data entry form provided in the Learn Assessment Dropbox.


Solutions

Expert Solution

Date Account Titles Debit Credit
Mar-02 Inventory $         5,600
      Accounts Payable - Flake Co. $         5,600
Mar-03 Inventory $            280
       Cash $            280
Mar-05 Accounts Receivable - Shingle Co. $         3,700
       Sales Revenue $         3,700
Cost of Goods Sold $         1,780
       Inventory $         1,780
Mar-06 Accounts Payable - Flake Co. $         1,200
       Inventory $         1,200
Mar-07 Sales Returns and Allowances $            400
       Accounts Receivable - Shingle Co. $            400
Mar-08 Cash $         3,234
Sales Discount $              66
       Accounts Receivable - Shingle Co. $         3,300
Mar-13 Accounts Payable - Flake Co. $         4,400
       Inventory $               44
       Cash $         4,356
Mar-18 Cash $         8,400
       Sales Revenue $         8,400
Cost of Goods Sold $         4,680
       Inventory $         4,680
Mar-20 Utilities Expense $            826
       Cash $            826

ekkarill92 answered 1 year ago
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