Question: The following transactions for Salem Tire Co occurred during June

The following transactions for Salem Tire, Co., occurred during June:
Jun 4 Purchased $5,000 of merchandise on account from Peter’s Tire. Terms, 2/15, n/45, FOB shipping point. Peter’s Tire prepaid the $150 shipping cost and added the amount to the invoice.
7 Purchased $200 of supplies on account from Office Buys. Terms, 1/10, n/30, FOB destination.
9 Sold $1,400 (cost, $750) of merchandise on account to L. Simpson. Terms, 3/15, n/45, FOB destination.
11 Paid $35 freight charges to deliver goods to L. Simpson.
13 Returned $1,100 of the merchandise purchased on June 4 and received a credit.
15 Sold $900 (cost, $475) of merchandise to cash customers.
16 Paid for the supplies purchased on June 7.
18 Paid Peter’s Tire the amount due from the June 4 purchase in full.
20 L. Simpson returned $500 (cost, $280) of merchandise from the June 9 sale.
22 Purchased $3,500 of inventory. Paid cash.
23 Received payment in full from L. Simpson for the June 9 sale.

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

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  • CreatedApril 29, 2014
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