Question

July 1 Purchased merchandise from Boden Company for $6,600 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 point, invoice dated July 2. The merchandise had cost $550. 3 Paid $120 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $1,900 for $2,300 cash. 9 Purchased merchandise from Leight Co. for $2,500 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. 11 Received a $500 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9. 12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. 16 Paid the balance due to Boden Company within the discount period. 19 Sold merchandise that cost $1,000 to Art Co. for $1,500 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. 21 Issued a $250 credit memorandum to Art Co. for an allowance on goods sold on July 19. 24 Paid Leight Co. the balance due after deducting the discount. 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount. 31 Sold merchandise that cost $5,400 to Creek Co. for $7,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.

Answer 1

July 1	Merchandise Inventory-Boden	6600
	Accounts payable		6600
JUly 2	Accounts receivable	950
	sales revenue		950
	cost of goods sold	550
	merchandise inventory		550
July 3	merchandise inventory	120
	cash		120
July 8	cash	2300
	sales revenue		2300
	cost of goods sold	1900
	merchandise inventory		1900
July 9	merchandise inventory-leight co	2500
	Accounts payable		2500
July 11	Accounts payable -leight co.	500
	merchandise inventory		500
July 12	cash	931
	sales Discount [950*.02]	19
	sales revenue -creek co.		950
July 16	Accounts payable	6600
	merchandise inventory [6600*.02]		132
	cash		6468
july 19	Accounts receivable -art co	1500
	sales revenue		1500
	cost of goods sold	1000
	merchandise inventory		1000
July 21	Sales return and allowance	250
	Accounts receivable -art co		250
JUly 24	Accounts payable   [2500-500]	2000
	merchandise inventory [2000*.02]		40
	cash		1960
jULY 30	cash	1225
	sales discount [1250*.02]	25
	Accounts receivable -art co [1500-250]		1250
July 31	Accounts receivable-creek co	7000
	sales revenue		7000
	cost of goods sold	5400
	merchandise inventory		5400