MGAB02H3 Lecture Notes - Lecture 5: Direct Deposit, Gross Profit, Accounts Receivable
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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 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. |
The following selected transactions were completed by AmsterdamSupply Co., which sells office supplies primarily to wholesalersand occasionally to retail customers. Also note that the companyuses a clearing house to take care of all bank as well as non-bankcredit cards used by its customers.
Record on page 10 of the journal
Mar. | 2 | Sold merchandise on account toEquinox Co., $18,900, terms FOB destination, 1/10, n/30. The costof the goods sold was $13,300. |
3 | Sold merchandise for $11,350 plus6% sales tax to retail cash customers. The cost of the goods soldwas $7,000. | |
4 | Sold merchandise on account toEmpire Co., $55,400, terms FOB shipping point, n/eom. The cost ofthe goods sold was $33,200. | |
5 | Sold merchandise for $30,000 plus6% sales tax to retail customers who used MasterCard. The cost ofthe goods sold was $19,400. | |
12 | Received check for amount due fromEquinox Co. for sale on March 2. | |
14 | Sold merchandise to customers whoused American Express cards, $13,700. The cost of the goods soldwas $8,350. | |
16 | Sold merchandise on account toTarghee Co., $27,500, terms FOB shipping point, 1/10, n/30. Thecost of the goods sold was $16,000. | |
18 | Issued credit memo for $4,800 toTarghee Co. for merchandise returned from sale on March 16. Thecost of the merchandise returned was $2,900. |
Record on page 11 of the journal
Mar. | 19 | Sold merchandise on account toVista Co., $8,250, terms FOB shipping point, 2/10, n/30. Added $75to the invoice for prepaid freight. The cost of the goods sold was$5,000. |
26 | Received check for amount due fromTarghee Co. for sale on March 16 less credit memo of March 18. | |
28 | Received check for amount due fromVista Co. for sale of March 19. | |
31 | Received check for amount due fromEmpire Co. for sale of March 4. | |
31 | Paid Fleetwood Delivery Service$5,600 for merchandise delivered during March to customers undershipping terms of FOB destination. | |
Apr. | 3 | Paid City Bank $940 for servicefees for handling MasterCard and American Express sales duringMarch. |
15 | Paid $6,544 to state sales taxdivision for taxes owed on sales. |
Journalize the entries to record the transactions of AmsterdamSupply Co. Refer to the Chart of Accounts for exact wording ofaccount titles.
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