Journalize the following transactions for the buyer, PriceCompany, using the gross method to account for purchase discounts.Assume a perpetual inventory system.
August 2 Purchased merchandise from Brown Company on account,$7,000, terms 2/10, n/30. The goods are shipped FOB shipping point,freight prepaid by seller, $50.
August 8 Returned to Brown Company merchandise previously purchasedon account, $500
August 12 Paid the amount due to Brown Company
Journalize the following transactions for the buyer, PriceCompany, using the gross method to account for purchase discounts.Assume a perpetual inventory system.
August 2 Purchased merchandise from Brown Company on account,$7,000, terms 2/10, n/30. The goods are shipped FOB shipping point,freight prepaid by seller, $50.
August 8 Returned to Brown Company merchandise previously purchasedon account, $500
August 12 Paid the amount due to Brown Company
Related questions
| Nov. | 3 | Instructions: Journalize the transactions below (credit and debit) Purchased merchandise on account from Moonlight Co., list price $90,000, trade discount Discounts from the list prices in published catalogs or special discounts offered to certain classes of buyers. 25%, terms FOB destinationFreight terms in which the seller pays the transportation costs from the shipping point to the final destination. , 2/10, n/30. |
| 4 | Sold merchandise for cash, $36,900. The cost of the goods sold The cost that is reported as an expense when merchandise is sold. was $20,480. | |
| 5 | Purchased merchandise on account from Papoose Creek Co., $50,700, terms FOB shipping point Freight terms in which the buyer pays the transportation costs from the shipping point to the final destination. , 2/10, n/30, with prepaid freight of $750 added to the invoiceThe bill that the seller sends to the buyer. . | |
| 6 | Returned $12,750 ($17,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co. | |
| 8 | Sold merchandise on account to Quinn Co., $14,550 with terms n/15. The cost of the goods sold was $9,510. | |
| 13 | Paid Moonlight Co. on account for purchase of November 3, less return of November 6. | |
| 14 | Sold merchandise on VISA, $239,110. The cost of the goods sold was $137,270. | |
| 15 | Paid Papoose Creek Co. on account for purchase of November 5. | |
| 23 | Received cash on account from sale of November 8 to Quinn Co. | |
| 24 | Sold merchandise on account to Rabel Co., $57,100, terms 1/10, n/30. The cost of the goods sold was $32,270. | |
| 28 | Paid VISA service fee of $3,700. | |
| 30 | Paid Quinn Co. a cash refund of $5,960 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,290. |
