ACC 100 Lecture Notes - Lecture 6: Trans7, Accounting Equation, 2 On

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ceruleanimpala478

26 Nov 2018

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You are a wholesaler who buys from suppliers overseas, from china and taiwan. Assume you are a wholesaler and you had the following transactions. Trans 1 - on april 18 you purchase 25 items from your supplier, on account, for each, credit terms 1/15, n/35, fob destination. Trans 2 - on april 19 the appropriate party pays the shipping costs of . Trans 3 - on april 30 you pay your supplier. Trans 4 - on may 15 you sell 12 of these items to a customer, on account, for each, Trans 5 - on may 16 the appropriate party pays freight of . Trans 6 - on may 18 the customer returns 2 of the items as he feels he ordered too many. The customer pays the return freight costs of . Trans 7 - on may 24 the customer pays the outstanding invoice. Record the effect of the above transactions on the expanded accounting equation.

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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 destination Freight 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 invoice The 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.

pucewildebeest226

Journalize the following transactions related to merchandising operations that occurred in August while paying attention to the credit terms:

Aug 1 - Purchased merchandise on account from ABC $1,500, FOB shipping point, terms n/30. The party paying the freight paid it in cash.
Aug 3 - Received credit of $200 from ABC for merchandise with flaws that you decided to keep.
Aug 5 - Sold merchandise on account to customers $500, terms 1/10,n/30. Cost of the items sold $250.
Aug 9 - Paid ABC.
Aug 25 - Granted credit of $200 to customers for merchandise returned with cost $100.
Aug 26 - Received payments on account from customers $200.

periwinkleelephant730

Jake's Big N Sporting Goods sells sporting goods and clothes in Omaha, On September 18, Jake (the owner) purchased $50,000 of merchandise from Chicago Wholesale Distributors fob shipping point, credit terms 3/10,n/30. On September 19, Jake purchased $45,000 of sporting goods and clothes from the Cincinnati Sports Wholesalers fob destination, credit terms 2/10,n/30. Both vendors hired KC Trucking Company to deliver the goods. The trucks carrying these goods collided on the Missouri river bridge between Omaha and Council Bluffs. Both drivers were "fished" out of the river and were not hurt. However, all of the merchandise was destroyed. Both suppliers have sent Jake's Big N Sporting Goods invoices and are expecting payment. The date is September 25. Advise Jake on what he should do and how much he should pay. Show your work. Explain your answer.

ACC 100 Lecture Notes - Lecture 6: Trans7, Accounting Equation, 2 On

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