Question

Prepare journal entries to record the following merchandising transactions of Yang Company, which applies the perpetual inventory system.
May 2 Purchased merchandise from Bots Co. for $9,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated May 2.
4 Sold merchandise to Chase Co. for $1,200 under credit terms of 2/10, n/60, FOB shipping point, invoice dated May 4. The merchandise had cost $750.
5 Paid $150 cash for freight charges on the purchase of May 2.
9 Sold merchandise that had cost $1,800 for $2,400 cash.
10 Purchased merchandise from Snyder Co. for $3,450 under credit terms of 2/15, n/60, FOB destination, invoice dated May 10.
12 Received a $300 credit memorandum from Snyder Co. for the return of part of the merchandise purchased on May 10.
14 Received the balance due from Chase Co. for the invoice dated May 4, net of the discount.
17 Paid the balance due to Bots Co. within the discount period.
20 Sold merchandise that cost $1,450 to Tex Co. for $2,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated May 20.
22 Issued a $400 credit memorandum to Tex Co. for an allowance on goods sold from May 20.
25 Paid Snyder Co. the balance due after deducting the discount.
30 Received the balance due from Tex Co. for the invoice dated May 20, net of discount and allowance.
31 Sold merchandise that cost $4,800 to Chase Co. for $7,500 under credit terms of 2/10, n/60, FOB shipping point, invoice dated May 31.



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  • CreatedDecember 27, 2012
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