The following are the merchandising transactions for the month of July of Healthy Candy. which is...

      

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The following are the merchandising transactions for the month of July of Healthy Candy. which is located in Doha Festival City and applies the perpetual inventory system: July 1: Sold merchandise to Applelton Sweets in the USA for $760 cash. The exchange rate on that date was ($1 = QR 3.6). The merchandise had cost QR 1,500 • July 5: Purchased merchandise from King Kandy in Qatar for QR 1,700 under credit terms of 3/10, n/30, FOB shipping point • July 6: Sold merchandise to Qatar Academy for QR 4,500, under credit terms of 2/15, n/60, FOB destination. The merchandise had cost QR 2,300 • July 10: Paid freight charges of QR 50 cash on the purchase of July 5 and QR 65 cash on the sale of July 6 • July 11: Received returned goods from Qatar Academy of QR 1,000. The cost of the returned goods was QR 550. However, the goods were defective and had a scrap value of QR 200 • July 15: Received the balance due from Qatar Academy, after excluding returns and discounts (if any) July 18: Sold merchandise to The Four Seasons Hotel Doha for QR 3,200 under credit terms of 2/10, n/30, FOB shipping point. The merchandise had cost QR 1,700 • July 20: Paid the balance due to King Kandy, after excluding returns and discounts (if any) • July 26: Received a notice that The Four Seasons Hotel Doha is closing down as a result of the pandemic and will not be able to pay for its July 18 purchase. The accountant of Healthy Candy decided to treat the amount owed as uncollectable. Assume that the company is using the direct write-off method July 30: Unpredictably received a QR 2,000 cash payment from The Four Seasons Hotel Doha Date 1, July 1, July 5, July 6, July 6, July Cash Sales - Appleton sweets Cost of goods sold Merchandise inventory Merchandise inventory Accounts Payable - King Kandy Accounts Receivable - Qatar Academy Sales Cost of goods sold Merchandise inventory Debit QR 2736 QR 1,500 QR 1,700 QR 4,500 QR 2,300 Credit QR 2736 QR 1,500 QR 1,700 QR 4,500 QR 2,300 10, July 11, July 11, July 15, July Merchandise inventory (the buyer paid) Cash Sales returns and allowances Merchandise inventory Sales Sales discount Accounts Receivable - Qatar Academy Cost of goods sold Accounts Receivable - Qatar Academy QR 115 QR 1,000 QR 200 QR 3430 QR 70* QR 115 QR 1,000 QR 200 QR 3,500 18, July 18, July 20, July 26, July 30, July 30, July Accounts Receivable - Four seasons Hotel Sales Cost of goods sold Merchandise inventory Accounts payable - king kandy Cash Bad debt expense Account Receivables - Four seasons hotel Bad debt expense Cash Accounts receivable - four seasons hotel Account Receivables - four seasons hotel QR 3,200 QR 1,700 QR 1,700 QR 3,200 QR 2,000 QR 2,000 QR 3,200 QR 1,700 QR 1,700 QR 3,200 QR 2,000 QR 2,000 The following are the merchandising transactions for the month of July of Healthy Candy. which is located in Doha Festival City and applies the perpetual inventory system: July 1: Sold merchandise to Applelton Sweets in the USA for $760 cash. The exchange rate on that date was ($1 = QR 3.6). The merchandise had cost QR 1,500 • July 5: Purchased merchandise from King Kandy in Qatar for QR 1,700 under credit terms of 3/10, n/30, FOB shipping point • July 6: Sold merchandise to Qatar Academy for QR 4,500, under credit terms of 2/15, n/60, FOB destination. The merchandise had cost QR 2,300 • July 10: Paid freight charges of QR 50 cash on the purchase of July 5 and QR 65 cash on the sale of July 6 • July 11: Received returned goods from Qatar Academy of QR 1,000. The cost of the returned goods was QR 550. However, the goods were defective and had a scrap value of QR 200 • July 15: Received the balance due from Qatar Academy, after excluding returns and discounts (if any) July 18: Sold merchandise to The Four Seasons Hotel Doha for QR 3,200 under credit terms of 2/10, n/30, FOB shipping point. The merchandise had cost QR 1,700 • July 20: Paid the balance due to King Kandy, after excluding returns and discounts (if any) • July 26: Received a notice that The Four Seasons Hotel Doha is closing down as a result of the pandemic and will not be able to pay for its July 18 purchase. The accountant of Healthy Candy decided to treat the amount owed as uncollectable. Assume that the company is using the direct write-off method July 30: Unpredictably received a QR 2,000 cash payment from The Four Seasons Hotel Doha Date 1, July 1, July 5, July 6, July 6, July Cash Sales - Appleton sweets Cost of goods sold Merchandise inventory Merchandise inventory Accounts Payable - King Kandy Accounts Receivable - Qatar Academy Sales Cost of goods sold Merchandise inventory Debit QR 2736 QR 1,500 QR 1,700 QR 4,500 QR 2,300 Credit QR 2736 QR 1,500 QR 1,700 QR 4,500 QR 2,300 10, July 11, July 11, July 15, July Merchandise inventory (the buyer paid) Cash Sales returns and allowances Merchandise inventory Sales Sales discount Accounts Receivable - Qatar Academy Cost of goods sold Accounts Receivable - Qatar Academy QR 115 QR 1,000 QR 200 QR 3430 QR 70* QR 115 QR 1,000 QR 200 QR 3,500 18, July 18, July 20, July 26, July 30, July 30, July Accounts Receivable - Four seasons Hotel Sales Cost of goods sold Merchandise inventory Accounts payable - king kandy Cash Bad debt expense Account Receivables - Four seasons hotel Bad debt expense Cash Accounts receivable - four seasons hotel Account Receivables - four seasons hotel QR 3,200 QR 1,700 QR 1,700 QR 3,200 QR 2,000 QR 2,000 QR 3,200 QR 1,700 QR 1,700 QR 3,200 QR 2,000 QR 2,000

Answer rating: 100% (QA)

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