Some of the transactions of Torres Company during August are listed below. Torres uses the periodic inventory method.
August 10 Purchased merchandise on account, $20,300, terms 2/10, n/30.
13 Returned part of the purchase of August 10, $1,100, and received credit on account.
15 Purchased merchandise on account, $25,300, terms 1/10, n/60.
25 Purchased merchandise on account, $33,100, terms 2/10, n/30.
28 Paid invoice of August 15 in full.
(a) Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken:
(1) Prepare general journal entries to enter the transactions.
Date Acct. Titles & Explanation
Debit & Credit Aug 10 Aug 13 Aug 15 Aug 25 Aug 28
(2) Prepare the adjusting entry necessary on August 31 if financial statements are to be prepared at that time.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(b) Assuming that purchases are recorded at net amounts and that discounts lost are treated as financial expenses:
(1) Prepare general journal entries to enter the transactions.
Date Account Titles & Explain Debit Credit Aug 10 Aug 13 Aug 15 Aug 25 Aug 28
(2) Prepare the adjusting entry necessary on August 31 if financial statements are to be prepared at that time
Acct Title Debit Credit
Some of the transactions of Torres Company during August are listed below. Torres uses the periodic inventory method.
August 10 Purchased merchandise on account, $20,300, terms 2/10, n/30.
13 Returned part of the purchase of August 10, $1,100, and received credit on account.
15 Purchased merchandise on account, $25,300, terms 1/10, n/60.
25 Purchased merchandise on account, $33,100, terms 2/10, n/30.
28 Paid invoice of August 15 in full.
(a) Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken:
(1) Prepare general journal entries to enter the transactions.
| Date | Acct. Titles & Explanation | Debit & Credit |
| Aug 10 | ||
| Aug 13 | ||
| Aug 15 | ||
| Aug 25 | ||
| Aug 28 |
(2) Prepare the adjusting entry necessary on August 31 if financial statements are to be prepared at that time.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(b) Assuming that purchases are recorded at net amounts and that discounts lost are treated as financial expenses:
(1) Prepare general journal entries to enter the transactions.
| Date | Account Titles & Explain | Debit | Credit |
| Aug 10 | |||
| Aug 13 | |||
| Aug 15 | |||
| Aug 25 | |||
| Aug 28 | |||
(2) Prepare the adjusting entry necessary on August 31 if financial statements are to be prepared at that time
| Acct Title | Debit | Credit |
Related questions
Nicole's Getaway Spa (NGS) has been so successful that Nicolehas decided to expand her spa by selling merchandise. She sellsthings such as nail polish, at-home spa kits, cosmetics, andaromatherapy items. Nicole uses a perpetual inventory system and isstarting to realize all of the work that is created when inventoryis involved in a business. The following transactions were selectedfrom among those completed by NGS in August. |
| Aug. 2 | Sold 10 items of merchandise to Salon World on account at aselling price of $2,000 (total); terms 2/10, n/30. The goods costNGS $1,300. |
| Aug. 3 | Sold 5 identical items of merchandise to Cosmetics R Us onaccount at a selling price of $1,100 (total); terms 2/10, n/30. Thegoods cost NGS $825. |
| Aug. 6 | Cosmetics R Us returned one of the items purchased on August 3.The item could still be sold by NGS in the future, and credit wasgiven to the customer. |
| Aug. 10 | Collected payment from Salon World, fully paying off the accountbalance. |
| Aug. 20 | Sold two at-home spa kits to Meghan Witzel for $500 cash. Thegoods cost NGS $160. |
| Aug. 22 | Cosmetics R Us paid itsremaining account balance in full. |
Find Net Sales & Costs of Goods Sold
Find Gross Profit Percentage (Round 2 Decimal Places)
Nicole's Getaway Spa (NGS) has been so successful that Nicolehas decided to expand her spa by selling merchandise. She sellsthings such as nail polish, at-home spa kits, cosmetics, andaromatherapy items. Nicole uses a perpetual inventory system and isstarting to realize all of the work that is created when inventoryis involved in a business. The following transactions were selectedfrom among those completed by NGS in August. Prepare journalentries for each transaction.
| Aug.2 | Sold 10 items of merchandise to Salon World on account at aselling price of $5,500 (total); terms 2/10, n/30. The goods costNGS $3,575. |
| Aug.3 | Sold 5 identical items of merchandise to Cosmetics R Us onaccount at a selling price of $3,200 (total); terms 2/10, n/30. Thegoods cost NGS $2,560. |
| Aug.6 | Cosmetics R Us returned one of the items purchased on August 3.The item could still be sold by NGS in the future and credit wasgiven to the customer. |
| Aug.10 | Collected payment from Salon World, fully paying off the accountbalance. |
| Aug.20 | Sold two at-home spa kits to Meghan Witzel for $1,200 cash. Thegoods cost NGS $384. |
| Aug.22 | Cosmetics R Us paid its remaining account balance in full. |
