Question

1. Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System

   The following selected transactions were completed during April between Swan Company and Bird Company:
   

   Apr.2.	Swan Company sold merchandise on account to Bird Company, $13,700, terms FOB shipping point, 2/10, n/30. Swan Company paid freight of $290, which was added to the invoice. The cost of the merchandise sold was $8,600.
   8.	Swan Company sold merchandise on account to Bird Company, $31,000, terms FOB destination, 1/15, n/30. The cost of the merchandise sold was $18,600.
   8.	Swan Company paid freight of $740 for delivery of merchandise sold to Bird Company on April 8.
   12.	Bird Company paid Swan Company for purchase of April 2.
   18.	Swan Company paid Bird Company a refund of $2,000 for defective merchandise in the April 2 purchase. Bird Company agreed to keep the merchandise.
   23.	Bird Company paid Swan Company for purchase of April 8.
   24.	Swan Company sold merchandise on account to Bird Company, $9,300, terms FOB shipping point, n/45. The cost of the merchandise sold was $5,600.
   26.	Bird Company paid freight of $280 on April 24 purchase from Swan Company.
   30.	Swan Company granted a customer allowance (credit memo) to Bird Company for $11,300 for merchandise that was returned from the August 24 purchase. The cost of the merchandise returned was $6,500.

   Required:

   1. Journalize the April transactions for Bird Company (the buyer).

   Date	Account	Debit	Credit
   Apr. 2	Merchandise Inventory
   	Accounts Payable-Swan Company

   Date	Account	Debit	Credit
   Apr. 8	Merchandise Inventory
   	Accounts Payable-Swan Company

   Date	Account	Debit	Credit
   Apr. 12	Accounts Payable-Swan Company
   	Cash

   Date	Account	Debit	Credit
   Apr. 18	Cash
   	Merchandise Inventory

   Date	Account	Debit	Credit
   Apr. 23	Accounts Payable-Swan Company
   	Cash

   Date	Account	Debit	Credit
   Apr. 24	Merchandise Inventory
   	Accounts Payable-Swan Company

   Date	Account	Debit	Credit
   Apr. 26	Merchandise Inventory
   	Cash

   Date	Account	Debit	Credit
   Apr. 30	Accounts Payable-Swan Company
   	Merchandise Inventory

   2. Journalize the April transactions for Swan Company (the seller).

   Date	Account	Debit	Credit
   Apr. 2-sale	Accounts Receivable-Bird Company
   	Sales

   Date	Account	Debit	Credit
   Apr. 2-freight	Accounts Receivable-Bird Company
   	Cash

   Date	Account	Debit	Credit
   Apr. 2-cost	Cost of Merchandise Sold
   	Merchandise Inventory

   Date	Account	Debit	Credit
   Apr. 8-sale	Accounts Receivable-Bird Company
   	Sales

   Date	Account	Debit	Credit
   Apr. 8-cost	Cost of Merchandise Sold
   	Merchandise Inventory

   Date	Account	Debit	Credit
   Apr. 8-freight	Delivery Expense
   	Cash

   Date	Account	Debit	Credit
   Apr. 12	Cash
   	Accounts Receivable-Bird Company

   Date	Account	Debit	Credit
   Apr. 18
   	Cash

   Date	Account	Debit	Credit
   Apr. 23	Cash
   	Accounts Receivable-Bird Company

   Date	Account	Debit	Credit
   Apr. 24-sale	Accounts Receivable-Bird Company
   	Sales

   Date	Account	Debit	Credit
   Apr. 24-cost	Cost of Merchandise Sold
   	Merchandise Inventory

   Date	Account	Debit	Credit
   Apr. 30	Customer Refunds Payable
   	Accounts Receivable-Bird Company

   Date	Account	Debit	Credit
   Apr. 30	Merchandise Inventory
   	Estimated Returns Inventory

Answer 1

1. Bird Company

Date	Account Titles	Debit	Credit
Apr-02	Inventory	$         13,990
	Accounts Payable		$          13,990
Apr-08	Inventory	$         31,000
	Accounts Payable		$          31,000
Apr-12	Accounts Payable	$         13,990
	Cash		$          13,716
	Inventory		$                274
Apr-18	Cash	$            2,000
	Inventory		$             2,000
Apr-23	Accounts Payable	$         31,000
	Cash		$          30,690
	Inventory		$                310
Apr-24	Inventory	$            9,300
	Accounts Payable		$             9,300
Apr-26	Inventory	$               280
	Cash		$                280
Apr-30	Accounts Payable	$         11,300
	Inventory		$          11,300

2. Swan Company

Date	Account Titles	Debit	Credit
Apr-02	Accounts Receivable	$         13,990
	Sales Revenue		$          13,700
	Cash		$                290
	Cost of Goods Sold	$            8,600
	Inventory		$             8,600
Apr-08	Accounts Receivable	$         31,000
	Sales Revenue		$          31,000
	Cost of Goods Sold	$         18,600
	Inventory		$          18,600
Apr-08	Delivery Expense	$               740
	Cash		$                740
Apr-12	Cash	$         13,716
	Sales Discount	$               274
	Accounts Receivable		$          13,990
Apr-18	Sales Return and allowances	$            2,000
	Cash		$             2,000
Apr-23	Cash	$         30,690
	Sales Discount	$               310
	Accounts Receivable		$          31,000
Apr-24	Accounts Receivable	$            9,300
	Sales Revenue		$             9,300
	Cost of Goods Sold	$            5,600
	Inventory		$             5,600
Apr-30	Sales Return and allowances	$         11,300
	Accounts Receivable		$          11,300
	Inventory	$            6,500
	Cost of Goods Sold		$             6,500