For the following purchasing and sales transactions, prepare the appropriate journal entry assuming a perpetual inventory...

For the following purchasing and sales transactions, prepare the appropriate journal entry assuming a perpetual inventory system is in place.

1. On January 1, Cougar Corp. purchased inventory from a supplier for $5,000. The credit terms on the transaction are 1/10, net 30.

2. On January 2, Cougar Corp. paid a shipping company $90 for freight associated with the January 1 purchase.

3. On January 5, Cougar Corp sold inventory with a cost of $1,600 for $2,600. The credit terms on the transaction are 1/15, net 30.

4. On January 6, Cougar Corp. returned $750 of the inventory purchased on January 1.

5. On January 7, Cougar Corp. paid $160 to ship the goods sold on January 5.

6. On January 9, Cougar Corp. paid for the purchase on January 1. (Don't forget to consider the purchase return on January 6).

7. On January 10, Cougar Corp. received payment for the sale made on January 5.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Problem 1: Record the Journal Entry or Entries for the following transactions assuming a perpetual inventory...

Problem 1: Record the Journal Entry or Entries for the following transactions assuming a perpetual inventory system is used. 1. XYZ Corp. is a retailer and they purchase 10,000 books for $25,000 dollars on account from ABC Corp. 2. Assume the terms of the sale described in #1 are FOB shipping point, XYZ Corp. pays Just-In-Time Logistics $2,200 for shipping. 3. XYZ Corp. purchases 3,600 calculators for $130,000 dollars from ABC Corp. under the terms 2/10, n/30 on March 1,...

Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory...

Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory system). Sold $28,000 of merchandise, which cost $21,400, on Mastercard credit cards. Mastercard charges a 5% fee. Sold $5,800 of merchandise, which cost $3,400, on an assortment of bank credit cards. These cards charge a 4% fee. 1. Sold $28,000 of merchandise on Mastercard credit cards. Mastercard charges a 5% fee. 2. Record the cost of the sale, $21,400. 3. Sold $5,800 of merchandise...

Journalize each of the following transactions assuming a perpetual inventory system. (If no entry is required...

Journalize each of the following transactions assuming a perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Feb. 1 Sold merchandise with a cost of $1,900 for $2,900; terms 2/10, n/30, FOB destination. 2 Paid $265 to ship the merchandise sold on February 1. 3 The customer of February 1 returned half of the amount purchased because it was the incorrect product; it was returned to inventory. 4...

Journalize each of the following transactions assuming a perpetual inventory system. (If no entry is required...

Journalize each of the following transactions assuming a perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Feb. 1 Purchased $17,100 of merchandise inventory; terms 2/10, n/30. 5 Purchased for cash $8,300 of merchandise inventory. 6 Purchased $22,100 of merchandise inventory; terms 3/15, n/45. 9 Purchased $1,950 of office supplies; terms n/15. 10 Contacted a major supplier to place an order for $210,000 of merchandise in exchange for...

Prepare the appropriate journal entry for each of these transactions, assuming the company records sales revenue under the gross method. Do not record cost of goods sold

The following transactions were selected from among those completed by Hailey Retailers in the current year:Nov. 20 Sold two items of merchandise to Customer B, who charged the $650 sales price on her Visa credit card. Visa charges Hailey a 3 percent credit card fee. 25 Sold 14 items of merchandise to Customer C at an invoice price of $3,100 (total); terms 3/10, n/30. 28 Sold 12 identical items of merchandise to Customer D at an invoice price of $7,680 (total);...

1. Assuming that CD City uses a perpetual inventory system, record the transactions. (If no entry...

1. Assuming that CD City uses a perpetual inventory system, record the transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet At the beginning of July, CD City has a balance in inventory of $3,150. The following transactions occur during the month of July. ..... Purchase CDs on account from Wholesale Music for $2,050, terms 2/10, n/30. Note: Enter debits before credits. Date General Journal Debit...

Prepare journal entries to record the following merchandising transactions of Cabela’s, which uses the perpetual inventory...

Prepare journal entries to record the following merchandising transactions of Cabela’s, which uses the perpetual inventory system and the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable—Boden.) July 1 Purchased merchandise from Boden Company for $6,100 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $950 under credit terms of 2/10, n/60, FOB shipping...

Prepare journal entries to record the following merchandising transactions of Lou’s, which uses the perpetual inventory...

Prepare journal entries to record the following merchandising transactions of Lou’s, which uses the perpetual inventory system and the gross method. Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable—Aron. Aug. 1 Purchased merchandise from Aron Company for $5,000 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. 5 Sold merchandise to Baird Corp. for $3,500 under credit terms of 2/10, n/60, FOB destination,...

Prepare journal entries to record the following merchandising transactions of Cabela’s, which uses the perpetual inventory...

Prepare journal entries to record the following merchandising transactions of Cabela’s, which uses the perpetual inventory system and the gross method. Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable—Boden. July 1 Purchased merchandise from Boden Company for $6,500 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $950 under credit terms of 2/10, n/60, FOB shipping...

Prepare journal entries to record the following merchandising transactions of Zhang's, which uses the perpetual inventory...

Prepare journal entries to record the following merchandising transactions of Zhang's, which uses the perpetual inventory system and the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable—Turner.) Jul. 1 Purchased merchandise from Turner Company for $11,800 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. Jul. 2 Sold merchandise to Hall Co. for $3,800 under credit terms of 2/10, n/60, FOB...

Subjects