Question

Prepare journal entries to record the following merchandising transactions of Mason Company, which applies the perpetual inventory system.
July 3 Purchased merchandise from OLB Corp. for $ 15,000 under credit terms of 1/10, n/30, FOB destination, invoice dated July 3.
4 At OLB’s request, Mason paid $ 150 cash for freight charges on the July 3 purchase, reducing the amount owed to OLB.
7 Sold merchandise to Brill Co. for $ 11,500 under credit terms of 2/10, n/60, FOB destination, invoice dated July 7. The merchandise had cost $ 7,750.
10 Purchased merchandise from Rupert Corporation for $ 14,200 under credit terms of 1/10, n/45, FOB shipping point, invoice dated July 10. The invoice showed that at Mason’s request, Rupert paid the $ 500 shipping charges and added that amount to the bill.
11 Paid $ 300 cash for shipping charges related to the July 7 sale to Brill Co.
12 Brill returned merchandise from the July 7 sale that had cost Mason $ 1,450 and been sold for $ 1,850. The merchandise was restored to inventory.
14 After negotiations with Rupert Corporation concerning problems with the merchandise purchased on July 10, Mason received a credit memorandum from Rupert granting a price reduction of $ 2,000.
17 Received balance due from Brill Co. for the July 7 sale less the return on July 12.
20 Paid the amount due Rupert Corporation for the July 10 purchase less the price reduction granted.
21 Sold merchandise to Brown for $ 11,000 under credit terms of 1/10, n/30, FOB shipping point, invoice dated July 21. The merchandise had cost $ 7,000.
24 Brown requested a price reduction on the July 21 sale because the merchandise did not meet specifications. Mason sent Brown a credit memorandum for $ 1,300 to resolve the issue.
30 Received Brown’s cash payment for the amount due from the July 21 sale.
31 Paid OLB Corp. the amount due from the July 3 purchase.



$1.99
Sales17
Views680
Comments0
  • CreatedNovember 26, 2013
  • Files Included
Post your question
5000