Preparing journal entries for merchandising activities-perpetual system
July 1 Purchased merchandise from Borden Company for $6,700 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1.
2 Sold merchandise to Creek Co. for $950 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $558.
3 Paid $135 cash for freight charges on the purchase of July 1
8 Sold merchandise that had cost $2,000 for $2,400 cash
9 Purchased merchandise from Light Co. for $2,900 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9.
11 Received a $900 credit memorandum from Light Co. for the return of part of the merchandise purchased on July 9.
12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount.
16 Paid the balance due to Borden Company within the discount period.
19 Sold merchandise that cost $1,000 to Art Co. for $1,500 under credit terms of 2/15, n/60, FOB shipping point, and invoice dated July 19.
21 Issued a $250 credit memorandum to Art Co. for an allowance on goods sold on July 19.
24 Paid Light Co. the balance due after deducting the discount
30 Received the balance due from Art Co. for the invoice dated July 19, net of discount.
31 Sold merchandise that cost $5,500 to Creek Co. for $7,100 under credit terms of 2/10, n/60, FOB shipping point, and invoice dated July 31.
Prepare journal entries to record the above merchandising transactions of Blink Company, which applies the perpetual inventory system.
1. Purchased merchandise from Borden Company for $6,700 under credit terms of 2/15, n/30, FOB shipping point, and invoice dated July 1.
2. Sold merchandise to Creek Co. for $950 under credit terms of 2/10, n/60, FOB shipping point, and invoice dated July 2.
3. Record the cost of merchandise sold, $558.
4. Paid $135 cash for freight charges on the purchase of July 1.
5. Record sale of merchandise for $2,400 cash.
6. Record cost of merchandise sold, $2,000.
7. Purchased merchandise from Light Co. for $2,900 under credit terms of 2/15, n/60, FOB destination, and invoice dated July 9.
8. Received a $900 credit memorandum from Light Co. for the return of part of the merchandise purchased on July 9.
9. Received the balance due from Creek Co. for the invoice dated July 2, net of the discount.
10. Paid the balance due to Borden Company within the discount period.
11. Sold merchandise to Art Co. for $1,500 under credit terms of 2/15, n/60, FOB shipping point, and invoice dated July 19
12. Record cost of merchandise sold, $1,000.
13. Issued a $250 credit memorandum to Art Co. for an allowance on goods sold on July 19.
14. Paid Light Co. the balance due after deducting the discount.
15. Received the balance due from Art Co. for the invoice dated July 19, net of discount.
16. Sold merchandise to Creek Co. for $7,100 under credit terms of 2/10, n/60, FOB shipping point, and invoice dated July 31.
17. Record cost of merchandise sold, $5,500.