Using the perpetual inventory method, with sales discounts on purchases recorded using the gross method and sales
Question:
Using the perpetual inventory method, with sales discounts on purchases recorded using the gross method and sales discounts on sales recorded using the gross method, prepare journal entries for the following transactions.
12-5 Purchased merchandise on account from Winter Company, list price $4,800, terms FOB shipping point, 5/15, net/40, with prepaid shipping costs of $160 added to the invoice.
12-6 Purchased merchandise on account from Snow, Inc., list price $1,500, with a 20% trade discount and terms FOB shipping point, 2/10, n/30.
12-7 Paid a shipping charge of $50 to First Freight Company on delivery of merchandise purchased from Snow, Inc. on 12-6.
12-8 Sold merchandise on account to Cold Company, list price $680, terms FOB shipping point, 1/5, n/20. The cost of the merchandise sold was $360.
12-9 Received credit memorandum for the return of $400 of the goods purchased from Winter Company.
12-10 Accepted a return of $60 of merchandise from Cold Company. The cost of the returned merchandise (which was not damaged) was $32.
12-13 Received payment on the balance of Cold Company's account.
12-16 Paid the balance on the account to Snow, Inc.
12-14 Sold merchandise to Crazy Year Co. for $750 cash. The cost of the goods sold was $400.
12-19 Paid the balance on the account to Winter Company.
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett