Question

New Macomb Wholesale Distributor made the following transactions in year 7.
Record all the transactions in general journal form.

feb 8th Bought inventory on account from Fountain Mfg. company for $18,600.00. terms 3/15, net 60.

feb 10th Paid $375 to Hare transport for shipping charges for inventory we are acquiring

feb 13th Sold merchandise on acct. to Alixx Co. for $92,500. All on acct. sales are with terms 1/10, net 30.
This merchandise cost us $55,500.

feb 16th Fountain Mfg. company issued us a 350.00 credit memo related to our purchase made on feb. 8th.

feb 17th Sold merchandise on acct. to Tyrone Sports Co. for $10,300. This merchandise cost us 9,455.

feb 19th Fully paid what is owed to Fountain Mfg.

feb 20th Alixx Co. returned 1/4 of what they purchased on the 13th.

feb 21st Alixx Co. fully paid what they owe us.

Mar 1st Tyrone Sports fully paid what they owe us.

Answer 1

		DR	CR
feb 8th	Inventory	18600
	Account Payable		18600
	(Bought inventory on account)
feb 10th	Inventory	375
	Cash		375
	(Paid shipping charges for inventory)
feb 13th	Account Receivable	92500
	Sales		92500
	(Sold merchandise on account to Alixx Co)
	Cost of Good Sold	55500
	Inventory		55500
	(Cost of Inventory Sold)
feb 16th	Account Payable	350
	Inventory		350
	(Inventory worth $350 returned to supplier)
feb 17th	Account Receivable	10300
	Sales		10300
	(Sold merchandise on account to Tyrone Sports Co)
	Cost of Good Sold	9455
	Inventory		9455
	(Cost of Inventory Sold)
19-Feb	Account Payable	18250
	Inventory		547.5
	Cash		17702.5
	(18600-350)*3%
	(Payment made to Fountain Mfg before discount Period)
feb 20th	Sales	23152
	Account Receivable		23152
	(To Record Sales Return)
	Inventory	13875
	Cost of Good Sold		13875
	(To Record Sales Return cost of goods to inventory)
feb 21st	Cash	68681
	Discount	694
	Account Receivable		69375
	(92500-23152)*.01
	(Cash received from Customer)
Mar 1st	Cash	10300
	Account Receivable		10300
	(Cash received from Customer)
	Total	322032	322032