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Question $1$

Question $2$

Question $3$

Question $4$

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Part $1$

Journalize the following transactions that occurred in November for May's Adventure Park$,$ assuming the perpetual inventory system is being used. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. $($Record debits$$ first, then credits. Exclude explanations from journal entries. Assume the company records sales using the gross$$ method.$)$

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Part $1$

Nov. $4$: Purchased merchandise inventory on account from Vera $$Company$,$ $ $10$ comma $000.$ Terms $3/10,$n$/$EOM$,$ FOB shipping point.

Date

Accounts

Debit

Credit

Nov. $4$

Merchandise Inventory

$10,000$

Accounts Payable$$Vera Company

$10,000$

Part $2$

Nov. $6$: Paid freight bill of $ $120$ on November $4$ purchase.

Date

Accounts

Debit

Credit

Nov. $6$

Merchandise Inventory

$120$

Cash

$120$

Part $3$

Nov. $8$: Returned half of the inventory purchased on November $4$ from Vera Company.

Date

Accounts

Debit

Credit

Nov. $8$

Accounts Payable$$Vera Company

$5,000$

Merchandise Inventory

$5,000$

Part $4$

Nov. $10$: Sold merchandise inventory for$$ cash, $ $2$ comma $000.$ Cost of$$ goods, $ $800.$ FOB destination.

Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step.

Date

Accounts

Debit

Credit

Nov. $10$

Cash

$2,000$

Sales Revenue

$2,000$

Part $5$

Now journalize the expense related to the November $10$ salelong dashCost of$$ goods, $ $800.$

Date

Accounts

Debit

Credit

Nov. $10$

Cost of Goods Sold

$800$

Merchandise Inventory

$800$

Part $6$

Nov. $11$: Sold merchandise inventory to Gregory $$Corporation$,$ $ $10$ comma $400,$ on$$ account, terms of $2/10,$n$/$EOM$.$ Cost of$$ goods, $ $4$ comma $160.$ FOB shipping point.

Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step.

Date

Accounts

Debit

Credit

Nov. $11$

Accounts Receivable$$Gregory Corporation

$10,400$

Sales Revenue

$10,400$

Part $7$

Now journalize the expense related to the November $11$ salelong dashCost of$$ goods, $ $4$ comma $160.$

Date

Accounts

Debit

Credit

Nov. $11$

Cost of Goods Sold

$4,160$

Merchandise Inventory

$4,160$

Part $8$

Nov. $12$: Paid freight bill of $ $20$ on November $10$ sale.

Date

Accounts

Debit

Credit

Nov. $12$

Delivery Expense

$20$

Cash

$20$

Part $9$

Nov. $13$: Sold merchandise inventory to Cabato $$Company$,$ $ $8$ comma $500,$ on$$ account, terms of $1/15,$n$/45.$ Cost of$$ goods, $ $3$ comma $400.$ FOB shipping point.

Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step.

Date

Accounts

Debit

Credit

Nov. $13$

Accounts Receivable$$Cabato Company

$8,500$

Sales Revenue

$8,500$

Part $10$

Now journalize the expense related to the November $13$ salelong dashCost of$$ goods, $ $3$ comma $400.$

Date

Accounts

Debit

Credit

Nov. $13$

Cost of Goods Sold

$3,400$

Merchandise Inventory

$3,400$

Part $11$

Nov. $14$: Paid the amount owed on account from November $4,$ less return and discount.

Date

Accounts

Debit

Credit

Nov. $14$

Accounts Payable$$Vera Company

$5,000$

Cash

$4,850$

Merchandise Inventory

$150$

Part $12$

Nov. $16$: After$$ negotiations, granted a $ $1$ comma $200$ allowance to Gregory Corporation on November $11$ sale.

Date

Accounts

Debit

Credit

Nov. $16$

Sales Returns and Allowances

$1,200$

Accounts Receivable$$Gregory Corporation

$1,200$

Part $13$

Nov. $17$: Received defective inventory as a sales return from the November $13$ sale, $ $300.$ Cost of$$ goods, $ $120.$

Start by preparing the entry to record the sales return and decrease the receivable. Do not update the Merchandise Inventory with this entry. We will do that in the following step.

Date

Accounts

Debit

Credit

Nov. $17$

Sales Returns and Allowances

$300$

Accounts Receivable$$Cabato Company

$300$

Part $14$

Now prepare the entry to update the Merchandise Inventory account for the cost of the returned merchandiselong dashCost of goods$$ returned,$$$ $120.$

Date

Accounts

Debit

Credit

Nov. $17$

Merchandise Inventory

$120$

Cost of Goods Sold

$120$

Part $15$

Nov. $18$: Purchased inventory of $ $3$ comma $800$ on account from Regan Corporation. Payment terms were $2/10,$n$/30,$ FOB destination.

Date

Accounts

Debit

Credit

Nov. $18$

Merchandise Inventory

$3,800$

Accounts Payable$$Regan Corporation

$3,800$

Part $16$

Nov. $20$: Received cash from Gregory $$Corporation$,$ less allowance and discount.

Date

Accounts

Debit

Credit

Nov. $20$

Cash

$9016$

Sales Discounts

$184$

Accounts Receivable$$Gregory Corporation

$9,200$

Part $17$

Nov. $26$: Paid amount owed on ac