Unit 5 Assignment

Exercise 1

Record the journal entries for the following transactions using the perpetual inventory system and periodic inventory system. Use a general journal to record all entries.

June 1: ABC Company purchased merchandise from Mikes wholesales for $2,500 under credit terms of 2/10, n/30, FOB shipping point

June 2: ABC Company received the merchandise and a bill for shipping of $150 from Henrys shipping company. The bill was paid when received

June 3: ABC Company sold $500 worth of merchandise for cash. The cost of these goods was $300

June 5: ABC Company sold $750 worth of merchandise on credit to Mr Jones with credit terms of 3/10, n/30 FOB destination. The goods cost $400

June 6: ABC Company paid $100 for the delivery of the goods to Mr Jones

June 6: ABC Company received a $500 credit memo from Mikes wholesales for a return of unsatisfactory goods

June 11: ABC Company made a payment to Mikes wholesales less the return and applicable discount

June 12: ABC Company made a sale to Mr. Dillard for $600 with a credit terms of 3/10, n/30 FOB shipping point. The goods cost $350.

June 15: ABC Company received payment from Mr Jones regarding June 5th sale

June 18: ABC issued a credit memo for $200 to Mr Dillard for return of unsatisfactory antiques. The goods valued at $75 were returned to inventory

June 30: ABC Company received payment from Mr Dillard regarding June 12 sale