Valerie's Vineyard Supply is a wholesaler who sells supplies and equipment to across the United States....

Transcribed Image Text:

Valerie's Vineyard Supply is a wholesaler who sells supplies and equipment to across the United States. Valerie has been in business since 1987. Gary's Grapes is a local supplier of equipment and supplies to a wide variety of growers and wineries in the Finger Lakes region of upstate New York and is a major customer (buyer) of Valerie's (seller) products. May 3 On May 3, Valerie purchased 1,000 units of inventory from a regional supplier at a price of $8 per unit. Valerie paid the total cost of $8,000 in cash. This was Valerie's only purchase of inventory. during the period. 5 On May 5, Valerie delivered 500 of the units in inventory to Gary's Grapes under credit terms 2/10, n/60 at a sales price of $12 per unit. The total sale price was $6,000. Valerie's cost of these units was $4,000. 7 On May 7, Gary realizes that 50 units were the wrong size and returns them to Valerie. Gary's cost of these units was $600. Valerios returns the units, which cost $400, to her inventory. 8 On May 8, Gary determines that 50 units are slightly damaged, but are still useable. He speaks with Valerie and decides to keep the units but asks for a price break. Valerie agrees and offers Gary a price reduction (allowance) and credits Gary's accounts receivable for $200 to compensate for the damage. 15 on May 15, Valerie receives a check from Gary for the amount owed on the sale made on May 5, net of any returns, allowances, and applicable cash discount. Prepare journal entries to record the following transactions for Valerie's Vineyard Supply, assuming that Valerie uses a perpetual inventory system and the gross method. Omit any explanations. Valerie's Vineyard Supply is a wholesaler who sells supplies and equipment to across the United States. Valerie has been in business since 1987. Gary's Grapes is a local supplier of equipment and supplies to a wide variety of growers and wineries in the Finger Lakes region of upstate New York and is a major customer (buyer) of Valerie's (seller) products. May 3 On May 3, Valerie purchased 1,000 units of inventory from a regional supplier at a price of $8 per unit. Valerie paid the total cost of $8,000 in cash. This was Valerie's only purchase of inventory. during the period. 5 On May 5, Valerie delivered 500 of the units in inventory to Gary's Grapes under credit terms 2/10, n/60 at a sales price of $12 per unit. The total sale price was $6,000. Valerie's cost of these units was $4,000. 7 On May 7, Gary realizes that 50 units were the wrong size and returns them to Valerie. Gary's cost of these units was $600. Valerios returns the units, which cost $400, to her inventory. 8 On May 8, Gary determines that 50 units are slightly damaged, but are still useable. He speaks with Valerie and decides to keep the units but asks for a price break. Valerie agrees and offers Gary a price reduction (allowance) and credits Gary's accounts receivable for $200 to compensate for the damage. 15 on May 15, Valerie receives a check from Gary for the amount owed on the sale made on May 5, net of any returns, allowances, and applicable cash discount. Prepare journal entries to record the following transactions for Valerie's Vineyard Supply, assuming that Valerie uses a perpetual inventory system and the gross method. Omit any explanations.

Answer rating: 100% (QA)

May 3 Cash 8000 Inventory 8000 May 5 Account... View the full answer