Question

Chad Funk is a hair stylist who opened a business selling hair products. He imports products from around the world and sells to salons in Canada. Oct. 1 Purchased $3,600 of hair spray from Orbit Pro; terms 3/10, n/30, FOB shipping point. The appropriate party paid the shipping cost of $310. 5 Sold shampoo costing $1,190 to Barber & Co. for a price of $1,700 with terms of 2/10, n/30, FOB shipping point. The appropriate party paid the shipping cost of $135. 7 Returned $1,600 of inventory to Orbit Pro due to an error in the Oct. 1 order. 10 Paid Orbit Pro for the purchase on October 1. 14 Barber & Co. returned $320 of inventory from the sale on Oct. 5. The inventory had a cost of $224. 22 Received the payment from Barber & Co. on the October 5 sale. 23 Purchased $4,200 of hair conditioner from Keratin Hair; terms 2/10, n/30, FOB shipping point. The appropriate party paid the shipping cost of $850. 25 Sold hair gel to Styling Room for an invoice price of $2,100, terms 2/10, n/30, FOB destination. The hair gel had a cost of $1,470. The appropriate party paid the shipping cost of $425. 26 Paid for the purchase on October 23. 31 Received the payment from Styling Room on the October 25 sale. Required: Record the journal entries for the month of October. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry descriptions are provided already in the journal entry worksheet.)

Answer 1

Answer

Date	Particulars	Dr. $	Cr. $
1-Oct	Purchases	3,600.00
	Accounts Payable (Orbit Pro)		3,600.00
	(Being goods purchased on credit)
1-Oct	Freight	310.50
	Cash		310.50
	(Being freight paid)
5-Oct	Accounts Receivable (Barber & Co.)	1,700.00
	Sales		1,700.00
	(Being goods sold on credit)
5-Oct	Cost of Goods Sold	1,190.00
	Inventory		1,190.00
	(Being cost of goods sold recorded)
7-Oct	Accounts Payable (Orbit Pro)	1,600.00
	Purchases Return		1,600.00
	(Being goods returned)
10-Oct	Accounts Payable (Orbit Pro)	2,000.00
	Cash		1,940.00
	Discount ($2,000 * 3%)		60.00
	(Being payment made after 3% discount)
14-Oct	Sales Return	320.00
	Accounts Receivable (Barber & Co.)		320.00
	(Being goods sold returned)
14-Oct	Inventory	224.00
	Cost of Goods Sold		224.00
	(Being cost of goods sold reversed)
22-Oct	Cash	1,380.00
	Accounts Receivable (Barber & Co.)		1,380.00
	(Being cash received from Debtors)
23-Oct	Purchases	4,200.00
	Accounts Payable (Keratin Hair)		4,200.00
	(Being goods purchased on credit)
23-Oct	Freight	850.00
	Cash		850.00
	(Being freight paid)
25-Oct	Accounts Receivable (Styling Room)	2,100.00
	Sales		2,100.00
	(Being sales made on credit
25-Oct	Cost of Goods Sold	1,470.00
	Inventory		1,470.00
	(Being cost recorded)
25-Oct	Freight - Out	425.00
	Cash		425.00
	(Being freight paid under FOB Destination)
26-Oct	Accounts Payable (Keratin Hair)	4,200.00
	Cash		4,116.00
	Discount ($4,200 * 2%)		84.00
	(Being payment made after discount)
31-Oct	Cash	2,058.00
	Discount ($2,100 * 2%)	42.00
	Accounts Receivable (Styling Room)		2,100.00
	(Being amount received after discount)

Dear Student, if u have any query, plz feel free to reach me.