Consider the following perpetual system merchandising transactions of Belton Company. Use a separate account for each...
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Consider the following perpetual system merchandising transactions of Belton Company. Use a separate account for each receivable and payable; for example, record the purchase July 1 in Accounts Payable-Jones Company. Do the analysis component. July 1 Purchased merchandise from Jones Company for $14,400 under credit terms of 2/15, n/30, FO8 factory. 2 Sold merchandise to Terra Co. for $2,400 under credit terms of 3/10, n/60, FOB shipping point. The merchandise had cost $1,750. 3 Paid $410 for freight charges on the purchase of July 1. 8 Sold merchandise that cost $3,625 for $4,900 cash. 9 Purchased merchandise from Keene Co. for $9,300 under credit terms of 3/15, n/60, FOB destination. 12 Received a $1,300 credit memo acknowledging the returm of merchandise purchased on July 9. 12 Received the balance due from Terra Co. for the credit sale dated July 2. 13 Purchased office supplies from EastCo on credit, $820, n/30. 16 Paid the balance due to Jones Company. 19 Sold merchandise that cost $2,650 to Urban Co. for $3,600 under credit tems of 3/15, n/60 FOB shipping point, 21 Issued a $240 credit memo to Urban Co. for an allowance on goods sold on July 19. 22 Received a debit memo from Urban Co. for an error that overstated the total invoice by $160, 29 Paid Keene Co. the balance due. 30 Recelved the balance due from Urban Co. for the credit sale dated July 19. 31 Sold merchandise that cost $7,100 to Terra Co. for $9,600 under credit terms of 3/10, n/60, FOB shipping point. Prepare General Journal entries to record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) ONNNROI Uourma UUUIL 1333 July 01 Merchandise inventory 14,400 Accounts payable-Jones Co. 14,400 2 July 02 Accounts receivable-Terra Co. 2,400 Sales 2,400 3 July 02 Cost of goods sold 1,750 Merchandise inventory 1,750 4 July 03 Merchandise inventory 410 Cash 410 July 08 Cash 4,900 Sales 4,900 July 08 Cost of goods sold 3,625 Merchandise inventory 3,625 7. July 09 Merchandise inventory 9,300 Accounts payable-Keene Co. 9,300 July 12 Accounts payable-Keene Co. 1,300 Merchandise inventory 1,300 9. July 12 Cash 2,328 Sales discounts 72 Accounts receivable-Terra Co. 2,400 10 July 13 Office supplies 820 Accounts payable--East Co. 820 July 16 Accounts payable-Jones Co. 14,400 11 Cash 14,112 Merchandise iventory 288 12 July 19 Accounts receivable-Urban Co. 3,600 Sales 3,600 Cost of goods sold Merchandise inventory 13 July 19 2,650 2,650 14 July 21 Sales returns and allowances 240 Accounts receivable-Urban Co. 240 Sales Accounts receivable-Urban Co. 15 July 22 160 160 16 July 29 Accounts payable-Keene Co. 8,000 Cash 8,000 17 July 30 Cash 3,104 Sales discounts 96 Accounts recelvable-Urban Co. 3,200 18 July 31 Accounts receivable-Terra Co. 9.600 Sales 9,600 8,000 17 July 30 Cash 3,104 Sales discounts 96 Accounts receivable-Urban Co. 3,200 18 July 31 Accounts receivable-Terra Co. 9,600 Sales 9.600 19 July 31 Cost of goods sold 7,100 Merchandise inventory 7,100 Analysis Component: As the senior purchaser for Belton Company, you are concermed that the purchase discounts you have negotiated are not being taken advantage of by the accounts payable department. Calculate the cost of the lost discount regarding the July 9 purchase. Assume a 6% interest rate and the funds are borrowed until the end of the full credit period. (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume 365 days a year.) Cost of the lost diacount 0.00 Consider the following perpetual system merchandising transactions of Belton Company. Use a separate account for each receivable and payable; for example, record the purchase July 1 in Accounts Payable-Jones Company. Do the analysis component. July 1 Purchased merchandise from Jones Company for $14,400 under credit terms of 2/15, n/30, FO8 factory. 2 Sold merchandise to Terra Co. for $2,400 under credit terms of 3/10, n/60, FOB shipping point. The merchandise had cost $1,750. 3 Paid $410 for freight charges on the purchase of July 1. 8 Sold merchandise that cost $3,625 for $4,900 cash. 9 Purchased merchandise from Keene Co. for $9,300 under credit terms of 3/15, n/60, FOB destination. 12 Received a $1,300 credit memo acknowledging the returm of merchandise purchased on July 9. 12 Received the balance due from Terra Co. for the credit sale dated July 2. 13 Purchased office supplies from EastCo on credit, $820, n/30. 16 Paid the balance due to Jones Company. 19 Sold merchandise that cost $2,650 to Urban Co. for $3,600 under credit tems of 3/15, n/60 FOB shipping point, 21 Issued a $240 credit memo to Urban Co. for an allowance on goods sold on July 19. 22 Received a debit memo from Urban Co. for an error that overstated the total invoice by $160, 29 Paid Keene Co. the balance due. 30 Recelved the balance due from Urban Co. for the credit sale dated July 19. 31 Sold merchandise that cost $7,100 to Terra Co. for $9,600 under credit terms of 3/10, n/60, FOB shipping point. Prepare General Journal entries to record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) ONNNROI Uourma UUUIL 1333 July 01 Merchandise inventory 14,400 Accounts payable-Jones Co. 14,400 2 July 02 Accounts receivable-Terra Co. 2,400 Sales 2,400 3 July 02 Cost of goods sold 1,750 Merchandise inventory 1,750 4 July 03 Merchandise inventory 410 Cash 410 July 08 Cash 4,900 Sales 4,900 July 08 Cost of goods sold 3,625 Merchandise inventory 3,625 7. July 09 Merchandise inventory 9,300 Accounts payable-Keene Co. 9,300 July 12 Accounts payable-Keene Co. 1,300 Merchandise inventory 1,300 9. July 12 Cash 2,328 Sales discounts 72 Accounts receivable-Terra Co. 2,400 10 July 13 Office supplies 820 Accounts payable--East Co. 820 July 16 Accounts payable-Jones Co. 14,400 11 Cash 14,112 Merchandise iventory 288 12 July 19 Accounts receivable-Urban Co. 3,600 Sales 3,600 Cost of goods sold Merchandise inventory 13 July 19 2,650 2,650 14 July 21 Sales returns and allowances 240 Accounts receivable-Urban Co. 240 Sales Accounts receivable-Urban Co. 15 July 22 160 160 16 July 29 Accounts payable-Keene Co. 8,000 Cash 8,000 17 July 30 Cash 3,104 Sales discounts 96 Accounts recelvable-Urban Co. 3,200 18 July 31 Accounts receivable-Terra Co. 9.600 Sales 9,600 8,000 17 July 30 Cash 3,104 Sales discounts 96 Accounts receivable-Urban Co. 3,200 18 July 31 Accounts receivable-Terra Co. 9,600 Sales 9.600 19 July 31 Cost of goods sold 7,100 Merchandise inventory 7,100 Analysis Component: As the senior purchaser for Belton Company, you are concermed that the purchase discounts you have negotiated are not being taken advantage of by the accounts payable department. Calculate the cost of the lost discount regarding the July 9 purchase. Assume a 6% interest rate and the funds are borrowed until the end of the full credit period. (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume 365 days a year.) Cost of the lost diacount 0.00
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Related Book For
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
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