Question

The following transactions for Bestbuy Tire, Co., occurred during November:
Nov 4 Purchased $5,100 of merchandise on account from Salem Tire. Terms, 2/15, n/45, FOB shipping point. Salem Tire prepaid the $75 shipping cost and added the amount to the invoice.
7 Purchased $600 of supplies on account from Office Maxx. Terms, 3/10, n/30, FOB destination.
9 Sold $1,250 (cost, $750) of merchandise on account to T. Thompson. Terms, 1/15, n/45, FOB destination.
11 Paid $50 freight charges to deliver goods to T. Thompson.
13 Returned $700 of the merchandise purchased on November 4 and received a credit.
15 Sold $1,300 (cost, $780) of merchandise to cash customers.
16 Paid for the supplies purchased on November 7.
18 Paid Salem Tire the amount due from the November 4 purchase in full.
20 T. Thompson returned $250 (cost, $170) of merchandise from the November 9 sale.
22 Purchased $3,500 of inventory. Paid cash.
23 Received payment in full from T. Thompson for the November 9 sale.

Requirements
1. Journalize the transactions on the books of Bestbuy Tire, Co.
2. What was Bestbuy Tire’s gross profit for the month of November?



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  • CreatedApril 29, 2014
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