In: Accounting
Swifty Corp. uses a periodic inventory system. The company had the following inventory transactions in April:
April | 3 | Purchased merchandise from Blue Spruce Ltd. for $26,000, terms 1/10, n/30, FOB shipping point. | ||
6 | The appropriate company paid freight costs of $770 on the merchandise purchased on April 3. | |||
7 | Purchased supplies on account for $5,050. | |||
8 | Returned damaged merchandise to Blue Spruce and was given a purchase allowance of $3,700. The merchandise was repaired by Blue Spruce and returned to inventory for future resale. | |||
30 | Paid the amount due to Blue Spruce in full. |
1. | The cost of the merchandise sold on April 3 was $19,910. | |
2. | The cost of the merchandise returned on April 8 was $2,400. | |
3. | Blue Spruce uses a periodic inventory system. |
Record the above transactions in Swifty’s books and in the books
of Blue Spruce. (Credit account titles are
automatically indented when the amount is entered. Do not indent
manually. If no entry is required, select "No Entry" for the
account titles and enter 0 for the amounts.)
Swifty Corp.
Date |
Account Titles and Explanation |
Debit |
Credit |
Apr. 3 |
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6 |
|||
7 |
|||
8 |
|||
30 |
|||
Blue Spruce Ltd.
Date |
Account Titles and Explanation |
Debit |
Credit |
Apr. 3 |
|||
6 |
|||
7 |
|||
8 |
|||
30 |
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List of Accounts
Assume that Swifty paid and Blue Spruce received the balance due
on April 12 instead of April 30. Prepare the journal entry to
record this payment on Swifty’s books and collection on Blue
Spruce’s books. (Credit account titles are
automatically indented when the amount is entered. Do not indent
manually. If no entry is required, select "No Entry" for the
account titles and enter 0 for the amounts. Round answers to the
nearest whole dollar, e.g. 5,275.)
Swifty Corp.
Date |
Account Titles and Explanation |
Debit |
Credit |
Apr. 12 |
|||
Blue Spruce Ltd.
Date |
Account Titles and Explanation |
Debit |
Credit |
Apr. 12 |
|||
Requirement:1
Date | Account Titles and Explanation | Debit | Credit |
Apr. 3 | Purchase | $ 26,000 | |
Account Payable | $ 26,000 | ||
(To record Inventory purchased on account) | |||
Apr. 6 | Freight-In | $ 770 | |
Cash | $ 770 | ||
( To record freight expense) | |||
Apr. 7 | Supplies | $ 5,050 | |
Accounts Payable | $ 5,050 | ||
[To record supplies on account] | |||
Apr. 8 | Account Payable | $ 3,700 | |
Purchases Returns and Allowance | $ 3,700 | ||
( To record purchase returns) | |||
May. 30 | Account Payable [26000-3700] | $ 22,300 | |
Cash | $ 22,300 | ||
( To record payments) |
Requirement:2
Date | Account Titles and Explanation | Debit | Credit |
Apr. 3 | Accounts Receivables | $ 26,000 | |
Sales | $ 26,000 | ||
(To record sales on account) | |||
Apr. 6 | No Entry | $ - | |
$ - | |||
Apr. 7 | No Entry | $ - | |
$ - | |||
Apr. 8 | Sales Returns and Allowance | $ 3,700 | |
Accounts Receivables | $ 3,700 | ||
( To record sales returns) | |||
May. 30 | Cash | $ 22,300 | |
Accounts Receivables | $ 22,300 | ||
( To record collection of accounts receivables) |
Requirement:3
Date | Account Titles and Explanation | Debit | Credit |
Apr. 12 | Account Payable | $ 22,300 | |
Purchase Discount [22300*1/100] | $ 223 | ||
Cash | $ 22,077 | ||
( To record payments) | |||
Date | Account Titles and Explanation | Debit | Credit |
Apr. 12 | Cash | $ 22,077 | |
Sales Discount [22300*1/100] | $ 223 | ||
Accounts Receivables | $ 22,300 | ||
( To record collection of accounts receivables) |