Question

Prepare journal entries to record the following merchandising transactions of Yarvelle Company, which applies the perpetual inventory system. (It will help to identify each receivable and payable; for example, record the purchase on May 2 in Accounts Payable—Pearl.)
May 2 Purchased merchandise from Pearl Co. for $6,600 under credit terms of 3/15, n/30, FOB shipping point invoice dated May 2.
4 Sold merchandise to Miller Co. for $1,000 under credit terms of 3/10, n/60, FOB shipping point, invoice dated May 4. The merchandise had cost $550.
5 Paid $120 cash for freight charges on the purchase of May 2.
9 Sold merchandise that had cost $1,900 for $2,300 cash.
10 Purchased merchandise from Verte Co. for $2,500 under credit terms of 3/15, n/60, FOB destination, invoice dated May 10.
12 Received a $500 credit memorandum from Verte Co. for the return of part of the merchandise purchased on May 10.
14 Received the balance due from Miller Co. for the invoice dated May 4, net of the discount.
17 Paid the balance due to Pearl Co. within the discount period.
20 Sold merchandise that cost $800 to Stephen Co. for $1,200 under credit terms of 3/15, n/60,
FOB shipping point, invoice dated May 20.
22 Issued a $100 credit memorandum to Stephen Co. for an allowance on goods sold from May 20.
25 Paid Verte Co. the balance due after deducting the discount.
30 Received the balance due from Stephen Co. for the invoice dated May 20, net of discount and allowance.
31 Sold merchandise that cost $5,400 to Miller Co. for $7,100 under credit terms of 3/10, n/60,
FOB shipping point, invoice dated May 31.


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  • CreatedMarch 18, 2015
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