Fashion Standards is a retail clothing store. Sales of merchandise and purchases of goods on account for January 2016, the
Fashion Standards is a retail clothing store. Sales of merchandise and purchases of goods on account for January 2016, the first month of operations, appear below.
1. Record the purchases of goods on account on page 6 of a three-column purchases journal.
2. Record the sales of merchandise on account on page 1 of a sales journal.
Accounts Receivable 111
Accounts Payable 205
Sales Tax Payable 231
Freight In 502
All customers have n/30 credit terms.
4. Total, prove, and rule the journals as of January 31.
5. Post the column totals from the special journals to the proper general ledger accounts.
6. Prepare a schedule of accounts payable for January 31.
7. Prepare a schedule of accounts receivable for January 31
PURCHASES OF GOODS ON ACCOUNT
Jan. 3 Purchased dresses for $4,500 plus a freight charge of $120 from Fashion Expo, Invoice 101, dated December 26; the terms are net 30 days.
5 Purchased handbags for $3,480 plus a freight charge of $89 from Tru Totes & Co., Invoice 223, dated December 28; the terms are 2/10, n/30.
7 Purchased blouses for $3,000 plus a freight charge of $75 from Extreme Fashions, Invoice 556, dated January 3; the terms are 2/10, n/30.
9 Purchased casual pants for $2,360 from Comfy Casuals, Invoice 110, dated January 5; terms are n/30.
12 Purchased business suits for $6,400 plus a freight charge of $150 from Professional Wears, Invoice 104, dated January 9; the terms are 2/10, n/30.
18 Purchased shoes for $3,120 plus freight of $80 from City Walks, Invoice 118, dated January 14; the terms are n/60.
25 Purchased hosiery for $1,025 from Silky Legs Express, Invoice 1012, dated January 20; the terms are 2/10, n/30.
29 Purchased scarves and gloves for $1,600 from Comfy Casuals, Invoice 315, dated January 26; the terms are n/30.
31 Purchased party dresses for $7,500 plus a freight charge of $250 from Special Occasions Dress Shop, Invoice 1044, dated January 27; the terms are 2/10, n/30.
SALES OF MERCHANDISE ON ACCOUNT
Jan. 4 Sold two dresses to Vivian Cho; issued Sales Slip 101 for $600 plus $48 sales tax.
5 Sold a handbag to Dina Bates; issued Sales Slip 102 for $525 plus $42 sales tax.
6 Sold four blouses to Julia Adams; issued Sales Slip 103 for $400 plus $32 sales tax.
10 Sold casual pants and a blouse to Cheryl Scott; issued Sales Slip 104 for $350 plus $28 sales tax.
14 Sold a business suit to Alleen De Revere; issued Sales Slip 105 for $500 plus $40 sales tax.
17 Sold hosiery, shoes, and gloves to Sasha Ramirez; issued Sales Slip 106 for $625 plus $50 sales tax.
21 Sold dresses and scarves to Elaine Patterson; issued Sales Slip 107 for $1,500 plus $120 sales tax.
24 Sold a business suit to Andrea Aguilar; issued Sales Slip 108 for $500 plus $40 sales tax.
25 Sold shoes to Tracy Mai; issued Sales Slip 109 for $300 plus $24 sales tax.
29 Sold a casual pants set to Toni Garcia; issued Sales Slip 110 for $600 plus $48 sales tax.
31 Sold a dress and handbag to Linda Martin; issued Sales Slip 111 for $950 plus $76 sales tax.
What is the net delivered cost of purchases for the month of January?Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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