Dental Supplies, Inc., is a wholesale supplier of dental supplies and materials. Dental Supplies, Inc., commenced business

Question:

Dental Supplies, Inc., is a wholesale supplier of dental supplies and materials. Dental Supplies, Inc., commenced business on August 1, 2019. Dental Supplies, Inc., purchases merchandise for cash and on open account. In August 2019, Dental Supplies, Inc., engaged in the following purchasing and cash payment activities:

DATE TRANSACTIONS

2019

Aug. 1 Issued Check 101 to purchase merchandise, $2,500.

2 Purchased merchandise for $2,200 from Brown Dental Corporation, Invoice 866, terms 1/10, n/30.

5 Purchased merchandise for $3,900, plus a freight charge of $100, from Dental Concepts, Invoice 2111, terms 2/10, n/30.

10 Paid amount due to Brown Dental Corporation for purchase of August 2, less discount, Check 102.

10 Received Credit Memorandum 272 from Dental Concepts for damaged merchandise totaling $300 that was returned; the goods were purchased on Invoice

2111, dated August 5.

11 Purchased merchandise for $1,700 from Brown Dental Corporation, Invoice 898, terms 1/10, n/30.

14 Paid amount due to Dental Concepts for Invoice 2111 of April 5, less the return of August 10 and less the cash discount, Check 103.

15 Purchased merchandise with a list price of $4,000 and trade discounts of 20 percent and 10 percent from Surgical Supplies, Invoice 1902, terms n/30.

20 Issued Check 104 to purchase merchandise, $1,900.

24 Returned merchandise purchased on August 20 as defective, receiving a cash refund of $175.

30 Purchased merchandise for $2,125, plus a freight charge of $75, from Dental Concepts, Invoice 2285, terms 2/10, n/30.

INSTRUCTIONS

Journalize the transactions above in a general journal. Use 1 as the journal page number.

Analyze:

What percentage of the total amount due Dental Concepts for the August 5 transaction is due to the freight charge?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For  book-img-for-question

College Accounting A Contemporary Approach

ISBN: 978-0077639730

4th edition

Authors: David Haddock, John Price, Michael Farina

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